Sun Pharma gains after Taro resolves all cases with US Dept of Justice

Sun Pharmaceutical Industries rose 1.31% to Rs 482.35 after the company's subsidiary Taro Pharmaceutical Industries resolved all cases related to the multi-year investigations by the US Department of Justice.

Taro Pharmaceutical Industries announced on Thursday that its wholly-owned subsidiary, Taro Pharmaceuticals U.S.A., Inc. has resolved all cases involving the company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division (DOJ) into the U.S. generic pharmaceutical industry.

The US Department of Justice (DOJ) had launched investigations against the company over generic drug pricing. Under a deferred prosecution agreement reached with the DOJ, the department will file an information for conduct that took place between 2013 and 2015.

 

If Taro adheres to the terms of the agreement, including the payment of $205.7 million, the DOJ will dismiss the information at the end of a three-year period.

The company has also reached a framework understanding with the DOJ Civil Division, subject to final agreement and agency authorisation, in which the company has agreed to pay $213.3 million to resolve all claims related to federal healthcare programs, it added.

Taro Pharmaceutical is discussing a separate corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General. This agreement will supplement Taro's existing compliance programs, based upon established best practices and industry standards, as well as the company's global code of conduct, it added.

"We are happy to have reached this global resolution with the DOJ," said Uday Baldota, Taro's CEO. "Taro is committed to the highest level of ethics and integrity andwe will continue to fully cooperate with the government on its ongoing investigation into the generic pharmaceutical industry."

Sun Pharma reported 37.1% decline in consolidated net profit to Rs 399.84 crore on 14.3% rise in total revenue from operations to Rs 8,184.94 crore in Q4 March 2020 over Q4 March 2019. The company will announce Q1 earnings on 31 July 2020.

Sun Pharmaceutical Industries is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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