New Delhi: Shares of Sun Pharma fell 3 per cent to Rs 960 on the BSE in Monday’s trade after the drugmaker temporarily halted production at its Mohali facility to implement corrective measures in line with the US Food and Drug Administration (US FDA) guidance.
“We now wish to inform you that the company has received a letter titled “Consent Decree Correspondence/Non-Compliance Letter” from the US FDA. US FDA has directed the company to take certain corrective actions at the Mohali facility before releasing further final product batches into the US,” Sun Pharma said in an exchange filing.
“These actions include, among others, retaining an independent CGMP expert to conduct batch certifications of drugs manufactured at the Mohali facility,” it added.
“The company is taking required corrective steps, but there will be a temporary pause in the release of batches from Mohali until the US FDA mandated measures are implemented. US shipments from Mohali will resume once these measures are in place,” the company further said.
At 12.08 pm, the stock was trading 2 per cent lower at Rs 970 on the BSE. On a year-to-date basis, the stock has declined 3 per cent, while it has risen 8 per cent in the last one year.
As per Trendlyne data, the average target price of the stock is Rs 1,166, which shows an upside of 20 per cent from the current market prices.
The consensus recommendation from 37 analysts for the stock is a buy. Of the 37 analysts covering the stock, 33 have strong ‘buy’ and ‘buy’ ratings, while only one has a sell rating. The remaining three have hold ratings.
Technically, Sun Pharma is trading below 7 out of 8 SMAs. The stock traded higher than the 200-day moving average but lower than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 150-day moving average. Day RSI (14) is 49.8. The RSI below 30 is considered oversold and above 70 overbought.