Sun Pharmaceutical Industries fell 6.97% to Rs 458 at 10:41 IST on BSE after media reported that the stock market regulator is likely to reopen the investigation into the insider trading case against the company and its promoters.
Meanwhile, the S&P BSE Sensex was up 158.35 points, or 0.44% to 36,352.65.On the BSE, 20.46 lakh shares were traded in the counter so far compared with average daily volumes of 10.61 lakh shares in the past two weeks. The stock had hit a high of Rs 467 and a low of Rs 441.95 so far during the day. The stock hit a 52-week high of Rs 678.80 on 6 September 2018. The stock hit a 52-week low of Rs 434.80 on 22 May 2018.
According to media reports, stock markets regulator Sebi is likely to reopen an insider trading case against Sun Pharmaceutical Industries as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas. The development comes after a whistleblower reportedly approached Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi and others, reports added.
In August 2017, Sun Pharmaceutical, its MD Dilip Shanghvi, and nine other entities settled an insider trading probe on payment of Rs 18 lakh towards settlement charges. Sebi is likely to reopen the case. The markets regulator has powers to reopen cases of settlement related to insider trading on various grounds, reports suggested.
With reference to news item captioned "Governance cloud over Sun, stock at 6-mth low.", the company issued a clarification on Thursday, 29 November 2018, that the said article refers to a note circulated by one of the securities firm. The points raised in this note pertain to historic events, some of which are dated as far back as 10-15 years. Certain points raised in the said note are incomplete and have been presented in a negative manner. The supporting information to the points raised in the note has been sourced from public domain and hence this information/data is already available in public domain. Further, there is no material impact of the said news article on the company.
Meanwhile, Sun Pharmaceutical Industries announced before trading hours today, 3 December 2018, that it has received final approval from US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for generic version of Ganirelix Acetate Injection, 250 mcg/0.5 mL. The generic version is therapeutic equivalent to Organon's Ganirelix Acetate injection, 250 mcg/0.5 mL. As per IQVIA, Ganirelix Acetate injection, 250 mcg/0.5 mL had annual sales of approximately $67 million in the US for the 12 months ended September 2018. The commercialization of this product in the US market is expected in Q4FY2019.
Further, Sun Pharmaceutical Industries announced on Saturday, 1 December 2018, that the scheme of arrangement among Sun Pharma Global FZE and Sun Pharmaceutical Industries (the company) and their respective members and creditors for demerger of the specified undertaking (as defined in the scheme of arrangement) of Sun Pharma Global FZE into the company, is effective from 1 December 2018 as the company has filed the National Company Law Tribunal order along with scheme of arrangement in E-form INC-28 with registrar of companies, Gujarat on 1 December 2018. The appointed date for the said Scheme of Arrangement is 1 April 2017.
On a consolidated basis, Sun Pharmaceutical Industries reported net loss of Rs 108.84 crore in Q2 September 2018 compared with net profit of Rs 1001.79 crore in Q2 September 2017. Net sales rose 3.89% to Rs 6846.48 crore in Q2 September 2018 over Q2 September 2017.
Sun Pharmaceutical Industries is the world's fifth largest specialty generic pharmaceutical company and India's top pharmaceutical company.
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