Sun Pharmaceutical Industries fell 0.90% to Rs 418 after media reported that a former employee of the company has sued the drug maker for violating the US False Claims Act and discrimination at workplace.According to media report, Sandra Hagenbrock, who was national account director at Sun Pharmaceutical Industries in the US and employed there from February 2016 to July 2019, alleged the company asked her to carry out off-label promotions of three drugs - Ilumya, Yonsa and Absorica - which she said was prohibited by federal laws. Off-label marketing is the promotion of drugs for uses not approved by the US Food and Drug Administration. When Hagenbrock objected to the practice, she was disciplined and retaliated against, the report added.
Besides, Hagenbrock accused the drug maker of discriminating against her by promoting younger and less-qualified candidates to positions she had applied for and was objectively more qualified to perform. Hagenbrock reportedly sought damages on over five counts including conspiring to create unlawful incentives in exchange for patient referrals and using false records and statements to get claims paid by the US government.
Shares of the pharmaceutical company have fallen 5.09% in two trading sessions to its current market price of Rs 418 from a recent closing high of Rs 440.45 on 7 November 2019.
Sun Pharmaceutical Industries' consolidated net profit stood at 1,064.09 crore in Q2 September 2019 as against a net loss of Rs 269.60 crore in Q2 September 2018. Net sales jumped 16.10% to Rs 7,949.19 crore in Q2 September 2019 over Q2 September 2018.
Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.
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