India’s largest drug manufacturing Company Sun Pharmaceutical Industries Limited (Sun Pharma) extended gains and rose over 8 percent, both on NSE and BSE concurrently on Friday’s trade. While on NSE it excelled at Rs. 527.95 up by 8.02 percent, on BSE it rose at Rs 528.20 up by 8.13 percent. The buoyancy is on the back of news reports that the USFDA (US regulator Food and Drug Authority) giving the company’s Halol plant in Gujarat a “Voluntary Action Indicated” – VAI – status came out.
The U.S Food & Drug Authority has classified Sun Pharmacutials Halol plant as VAI after the USFDA team completed inspection on February 23. The U.S drug regulator had issued three observations to the drug major’s plant and nature of these observations were procedural in nature.
According to information on U.S FDA’s website, “Voluntary Action Indicated” or VAI implies objectionable conditions were found and documented but the agency is not prepared to take or recommend any future regulatory action and any corrective action is on the investigator to take voluntarily.
The company’s Halol plant contributes towards 11% of its US sales and 4% of total sales. With expectations that it could receive USFDA approval, shares of Sun Pharma were traded in heavy volumes in the week ended Friday.