Pharmaceutical stocks have been receiving high investor attention due to the coronavirus outbreak. However, for Sun Pharmaceutical Industries Ltd, the attention is for the wrong reasons.
The US Food and Drug Administration (US FDA) has rapped the drug maker with an official action status indicated (OAI) letter for its Halol plant.
This comes as a negative surprise, since the company had received a product approval from the plant just two months ago. However, the company’s ex-India business is already valued at distress levels of about one-time sales, and as such, the impact on valuations is limited, point out analysts at Jefferies India Pvt.