Focus: US FDA warnings shrink market cap for Indian drug makers

Market capitalization of Indian drug makers has taken a hit as the US Food and Drug Administraton rains warnings against manufacturing practices, The Pharma Letter’s Anjali Shukla tracks the dent.

Shares in Cadila Healthcare (BOM:532321) plunged 17% on the Bombay Stock Exchange on December 31 after the company received a warning letter from the US FDA for violating manufacturing standards at its Moraiya formulation plant and Ahmedabad oncology API (active pharmaceutical ingredient) facility.

On December 19, Sun Pharmaceutical Industries (BOM:524715), the largest Indian drug maker, was slapped a warning letter from the FDA for violating manufacturing standards at its Halol plant in the western Indian state of Gujarat. The company has been trying to fix the issues at that plant for over a year.