Sun Pharma, the highest market-cap holding company in the pharmaceutical sector, tumbled as much as 2.5% at Rs 670. The stock of Sun Pharma dragged the entire Pharma index to fall by 1.1% and thereby the benchmark indices by 0.25%.
USFDA conducted a surprise inspection at Sun Pharma’s Dadra plant and found alleged storage and logistics lapses. The plant is a formulation plant and contributes nearly 250 million Dollar to the yearly sales.
Moreover, Indian Rupee opened at 64.69, down 18 paise from the previous close of 64.51. Currently rupee is trading at 64.36. Indian Rupee was trading at 68.15 at the beginning of the calendar year 2017, thereby it has fallen by nearly 3.8.
Sun Pharma is the fifth largest specialty generic pharma company in US market and US revenues contribute nearly 48% to its total revenue. Thereby with such a drop-in the dollar and inspection at Dadra plant, earnings of Sun Pharma in Q1FY18 may get affected.