Sun pharma which had earlier received Voluntary Action Indicated (VAI) for its Halol facility finally received much awaited Establishment inspection report for the same.
Why is this important
The Halol facility currently accounts for 11 percent of U.S. sales and about 4 percent of total sales—down from 22 percent and 12 percent, respectively, before it ran into regulatory trouble with USFDA. Further the research arm of Sun pharma had two important drugs- Xelpros (for eye disease called Glaucoma) and Elepsia XR (for seizures) that were to be manufactured at Halol. With receipt of EIR for Halol, it will be important for Sun pharma to ramp up its operations.
Impact on stock
The news is positive for stock of Sun pharma (CMP: Rs 545, M.cap: Rs 130915 cr, 21x FY20E P/E).