SHARES of Zhejiang Huahai Pharmaceuticals Co. tumbled yesterday, the first day of trading since the U.S. Food and Drug Administration (FDA) halted imports of drug ingredients or medicines made by the company.

The drugmaker’s Shanghai-listed stock fell the maximum allowed 10 percent, its biggest drop in three months, after the company said Sunday that the move by the U.S. FDA along with regulators in Europe would hit its export business.

The bulk manufacturer of the high blood pressure treatment valsartan recalled the product from consumers in the United States in July after an impurity linked to cancer was detected.

European authorities said late last month they had found that Zhejiang Huahai did not comply with good manufacturing practices and that the company’s factory in Linhai, China, was no longer authorized to produce valsartan.

Zhejiang Huahai, which says its makes more than 50 drugs, APIs and intermediate products, made 61 percent of its total revenue last year outside of China.

Zhejiang Huahai said that it faced risks including being sued by clients and from further action by authorities in Europe. The firm and its units have been sued by U.S. consumers over the valsartan issue. (SD-Agencies)