One of India’s largest drugmaker shares slipped on Monday, June 16, after the US Food and Drug Administration (US FDA) issued eight observations on the pharma player’s Halol manufacturing facility in Gujarat.
With a market capitalization of Rs 4,02,129, the share price of Sun Pharmaceutical Industries Ltd was trading almost 2% down to Rs 1,655 from its previous closing price of Rs 1,688.
Sun Pharma, in a regulatory filing, said the US FDA conducted a Good Manufacturing Practices (GMP) inspection at its Halol facility between June 2 and June 13, 2025. The inspection concluded with the issuance of a Form 483 containing eight observations, pointing to possible procedural or documentation issues requiring corrective action.
The Halol plant, one of the company’s largest manufacturing sites, has previously faced regulatory scrutiny and has been under an import alert since a warning letter was issued in May 2022, barring exports to the US. Sun Pharma stated it will address the observations and take all necessary corrective measures.
Swiss brokerage UBS has maintained a buy call on Sun Pharma with a target price of Rs 2,450 per share, following the recent key leadership changes by the management. The company’s Halol facility inspection resulted in eight observations, and the nature of these findings will be critical in the near term, added the brokerage.
Sun Pharmaceutical Industries Ltd is engaged in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs).
The company and its subsidiaries have various manufacturing facilities spread across the world, with trading and other incidental and related activities extending to the global market. It is the largest pharmaceutical company in India.
It operates in over 100 countries with a diverse portfolio spanning specialty drugs, branded generics, APIs, and generics. It ranks 12th in the U.S. generics market and is the largest pharma company in India, with a strong presence in 80+ emerging markets and expanding reach in developed regions.
With 41 manufacturing facilities and 43,000+ employees, its capabilities span injectables to tablets, backed by global R&D and regulatory approvals including the USFDA.
The company reported a revenue of Rs 52,578 crore in FY25, up by 8.42 percent from its FY24 revenue of Rs 48,497 crore. Coming to its profitability, the company reported a net profit rise of 14.1 percent to Rs 10,965 crore in FY25 from Rs 9,610 crore in FY24. The stock delivered an ROE and ROCE of 16.9 percent and 20.2 percent.
Written By: Rohan Pandey
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