The Sun pharma stock fell over 1% in the noon trading session today after opening flat, as traders booked profit after it rose nearly 5% in the last trading session (Friday) of the previous week, following a decline in the number of observations from nine to three for its Halol plant.
However, this sheer comparison of the number of observations does not suffice that the plant is anywhere close to getting an all clear from the US Food and Drugs Administration (USFDA).
Though the number of observations has come down, it is not yet clear what these observations are.
About 40% of the US revenues of the pharma major is linked to the site. Sun Pharma had revenues of Rs 30,264 crore in FY17, of which Rs 13,300 crore came from the US, according to an ET report.
Its market value jumped by over Rs 6,730 crore or 5.17% in a day after Sun Pharma recently informed stock exchanges that it had received only three observations - references to violations - from the US Food and Drugs Administration (USFDA).
The reason for this buoyancy is that the company may be getting better at resolving the issues at the critical site.