Sun Pharma Shares Plunge After US Authorities Seize Drugs

28 June 2009 (Last Updated June 28th, 2009 18:30)

Shares of India's Sun Pharmaceutical dropped by 17% on 26 June after US authorities seized drugs manufactured by the company's US division. US Marshals on behalf of the Food and Drug Administration (FDA) seized all Sun Pharmaceutical drugs made at the company’s US division Caraco Pharma

Shares of India’s Sun Pharmaceutical dropped by 17% on 26 June after US authorities seized drugs manufactured by the company’s US division.

US Marshals on behalf of the Food and Drug Administration (FDA) seized all Sun Pharmaceutical drugs made at the company’s US division Caraco Pharmaceutical’s three manufacturing plants in Michigan for violations of manufacturing standards.

Officials from the FDA cited poor control of raw materials, higher-than-normal variability in tablet manufacturing processes and poor management decisions regarding drug quality as the reasons for the drug seizure.

Up to 33 drugs were manufactured at the facility including generic versions of heart, pain and psychiatric medicines.