Sun Pharma In Trouble Again: Company Shares Slide After FDA Warning Letter Over Manufacturing Violations

Sun Pharma In Trouble Again: Company Shares Slide After FDA Warning Letter Over Manufacturing Violations

This warning letter was sent to the company for an alleged procedural violation in the company's facility in the union territory of Dadra.

Juviraj AnchilUpdated: Thursday, June 20, 2024, 11:56 AM IST
article-image
Representational Image

Sun Pharma is once again in the news, and once again for the wrong reasons. Recently, the pharmaceutical company received a warning letter from the United States Food and Drug Authority or USFDA.

This warning letter was sent to the company for an alleged procedural violation in the company's facility in the union territory of Dadra.

Sun Pharma Shares Drop

After this development came to pass, the company shares do not appear to have gotten off to the best start to the day's trade. The share prices were trading at a low of Rs 1,475.55, having dropped by 1.89 per cent or Rs 28.45.

The share prices were trading at a low of Rs 1,475.55, having dropped by 1.89 per cent or Rs 28.45.

The share prices were trading at a low of Rs 1,475.55, having dropped by 1.89 per cent or Rs 28.45. |

This is not the first time the company has come under scrutiny and its shares have suffered a subsequent decline. Just this year (2024), the company has been subject to similar scrutiny, the latest of it all came in April.

In April, the company itself reported that the USFDA conducted an inspection of the company's Dadra unit. This had resulted in a drop 3 per cent in its shares then as well.

However, despite this, it is to be noted that, when the Q4 results came in, the company exhibited an impressive 34 per cent jump in its net profit. The pharma enterprise's consolidated net profit stood at Rs 2,654.5 crore.

In addition to that, the company's revenue also surged. The consolidated revenue accrued was Rs 11,982.9 crore, up 9 per cent.

In addition to that, the company's revenue also surged. The consolidated revenue accrued was Rs 11,982.9 crore, up 9 per cent. | Representative Image

Major Pharma Shares in a Mix

In addition to that, the company's revenue also surged. The consolidated revenue accrued was Rs 11,982.9 crore, up 9 per cent.

As a result of this, the company even announced a Rs 5 dividend per share to the shareholders.

When we look at the prospects of the entity's other competitors, Mumbai-based pharma entity Cipla stood at Rs 1,545.95, with a decline of 0.89 per cent or Rs 13.85.

Divi Labs also dropped by 0.28 per cent. The trade affair were slightly better for Ahmedabad-based Zydus, who saw their share prices jump by 0.55 per cent or Rs 5.90, taking the overall value to Rs 1,079.45.   

RECENT STORIES

Modi 3.0 Budget 2024: From Tax Incentives To FDI; Real Estate Sector Looks At Union Budget With Hope...

Modi 3.0 Budget 2024: From Tax Incentives To FDI; Real Estate Sector Looks At Union Budget With Hope...

'No Office, No Holiday': HCL To Deduct Leaves Of Employees Who Don't Come To Workspace, Says Report

'No Office, No Holiday': HCL To Deduct Leaves Of Employees Who Don't Come To Workspace, Says Report

Modi 3.0 Budget 2024: Will There Be A Re-Birth Of The Railway Budget?

Modi 3.0 Budget 2024: Will There Be A Re-Birth Of The Railway Budget?

Best washing machine for middle-class families: Top brands comparison

Best washing machine for middle-class families: Top brands comparison

'America Really Is The Land Of Opportunity': Elon Musk Reacts To Prosperity Of Minority Groups In...

'America Really Is The Land Of Opportunity': Elon Musk Reacts To Prosperity Of Minority Groups In...