The shares of Sun Pharma went up today after falling for five consecutive sessions as the healthcare firm said it would not revise its revenue guidance for the current financial year due to USFDA's import alert at its Halol facility. Sun Pharma said there wouldn't be a negative impact on Sun Pharma's specialty portfolio after the US Food and Drug Administration imposed import alert.
Sun Pharma stock went up to 1.46% to 995.30 against the previous close of Rs 980.95 on the BSE, and was buoyed by the company's statement. The share opened at Rs 980.80 on the BSE.
Sun Pharma's shares are trading higher than the 100 day and 200 day moving averages but are lower than 5 day, 20 day and 50 day moving averages. Sun Pharma stock has gained 30.39 per cent in a year and risen 17.13 percent in 2022.
A total of 0.40 lakh shares of the firm changed hands on the BSE, which is a turnover of Rs 3.90 crore. The firm's market cap rose to 2.38 lakh crore.
The Sun Pharma stock had fallen 2.5% on the news of import alert in the previous session.
The Japanese brokerage Nomura has assigned a buy call to Sun Pharma for a target of Rs 1094. The import alert of Halol is a negative surprise as it will lead to loss of sales, besides delaying new product approvals, said Nomura. In FY 22, sales from site to US were $150 million, a 3% share of revenue, Nomura said. It expects to have a 4 -- 7% impact on FY 24 FEPS.
Morgan Stanley is overweight on Sun Pharma with a target price of 1150.
Morgan Stanley said that net sales impact on the firm's ongoing business should be 1%, because of the escalation of regulatory action at Halol. This site will be blocked from being approved for future approvals. Morgan Stanly expects to have a marginal impact on the growth story, since the balance sheet is strong and the company is net cash positive.
All future shipments of products made at Halol can be refused admission to the US market until the facility is compliant with the FDA's Current Good Manufacturing Practice standards, the company said in a stock exchange filing.
Supplys to the US market from the Halol facility accounted for approximately 3% of the company's consolidated revenues, including 14 excluded products, for the year ended March 31, 2022.