Sun Pharma

Sun Pharma plunges on seizure of arm's drugs

Sun Pharmaceuticals on Friday plunged as much as 18 per cent in the morning trade on the Bombay Stock Exchange after the US health regulator seized drugs from the Michigan facilities of Caraco, a subsidiary of the domestic pharma company.

Shares of Sun Pharma opened weak on the BSE and lost further ground and plunged to a low of Rs 1,070, down 17.59 per cent over the previous close.

The US Food and Drug Administration (FDA) on Thursday seized all drug products manufactured by generic drug maker Caraco Pharmaceutical at its Michigan facilities in Detroit following repeated violations of the manufacturing standards.

“This action follows Caraco's continued failure to meet the FDA's current Good Manufacturing Practice (GMP) requirements, which assure the quality of manufactured drugs.
Following the announcement, shares of Caraco plunged 43 per cent at $2.39 on the American Stock Exchange on Thursday.