By Pratik Parija and Saikat Chatterjee

June 27 (Bloomberg) -- Sun Pharmaceutical Industries
Ltd.<http://www.bloomberg.com/apps/quote?ticker=SUNP%3AIN>’s
products distributed by its Detroit-based unit will be unaffected by a U.S.
investigation into the subsidiary, Chairman Dilip
Shanghvi<http://search.bloomberg.com/search?q=Dilip+Shanghvi&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>said.

Customers won’t shun Sun Pharmaceutical products, Shanghvi said on a
conference call today.

Sun Pharmaceutical, India’s most valuable drugmaker, fell in Mumbai trading
yesterday after the U.S. drug regulator confiscated generic medicines made
by its unit, Caraco Pharmaceutical Laboratories
Ltd.<http://www.bloomberg.com/apps/quote?ticker=CPD%3AUS>The stock
declined 12 percent to 1,141.15 rupees at the close.

“My sense is that Sun’s sales will not be affected,” Shanghvi said. “We may
lose for a short period of time. We should be able to regain sales.”

Inspectors who visited the Caraco facilities in May 2009 found “serious
violations” of manufacturing standards and “serious deficiencies” in quality
control, Deborah
Autor<http://search.bloomberg.com/search?q=Deborah+Autor&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1>,
director of the Office of Compliance at the U.S. FDA Center for Drug
Evaluation and Research, said June 25.

The FDA issued a warning letter to Caraco in October 2008 after inspections
in May and June found manufacturing deficiencies, including the cross
contamination of two drugs.

Sun Pharmaceutical is reassessing its sales outlook after the investigation,
which may necessitate a change in its forecast for the year ending March
2010, Shanghvi said.

“What we have said is that we are withdrawing our guidance for the year and
when we reissue our guidance that will factor a more measured response to
all the current issues,” he said.





-- 
Swami Vivekananda :* Life and Teachings*

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