Sun Pharma tumbles on report of fresh allegations by whistleblower

Shares of India’s Sun Pharmaceutical Industries Ltd slumped over 13 percent on Friday to near six-year low, after a media report of a complaint by a whistleblower raised fresh concerns on the drugmaker’s corporate governance.

The complaint, sent to the capital market regulator Securities and Exchange Board of India (SEBI), is the second in over a month, according to the report by Moneylife magazine.

The whistleblower complaint alleges that an Indian pharmaceutical manufacturer Aditya Medisales Ltd had transactions with Suraksha Realty, controlled by Sun Pharma’s co-promoter, Sudhir Valia, the report stated.

The transactions took place between 2014 and 2017, and were worth over 58 billion rupees ($814.65 million), it added.

A whistleblower had approached SEBI late last year with a document alleging various irregularities by Sun Pharma, its promoter Dilip Shanghvi and others.

Sun Pharma did not immediately respond to a Reuters request seeking comment.

Shares of the country’s largest drugmaker by market value recorded their biggest intra-day percentage drop since May 29, 2017.

Over 31.4 million shares changed hands as of 0453 GMT, around 2.7 times Sun’s 30-day trading volume average of 11.7 million shares.

Earlier this month, Sun Pharma had recalled muscle relaxtant vecuronium bromide for injection due to the presence of glass.

Related Posts

Over-the-counter sale of cough syrup barred

Following the Drugs Rules amendment, lozenges, pills, and tablets for cough will still be available over the counter; 24 children in M.P. died after consuming adulterated cough syrup last year…

FDA seals Bhiwandi-based cosmetic factory for misleading claims, fake address

Mumbai: On Tuesday, the FDA said it had sealed a cosmetic manufacturing factory in Bhiwandi for allegedly misleading consumers on e-commerce platforms by labelling its products as sulfate-free and paraben-free. The stock…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

Over-the-counter sale of cough syrup barred

Over-the-counter sale of cough syrup barred

FDA seals Bhiwandi-based cosmetic factory for misleading claims, fake address

FDA seals Bhiwandi-based cosmetic factory for misleading claims, fake address

Yashoda Medicity’s AI-enabled E- ICU poised to make Quality Critical Care Universal

Yashoda Medicity’s AI-enabled E- ICU poised to make Quality Critical Care Universal

Licences no shield in NDPS cases: HC refuses bail in 1.37 crore tablets seizure

Licences no shield in NDPS cases: HC refuses bail in 1.37 crore tablets seizure

No cough syrups without a doctor’s prescription – New rules announced

No cough syrups without a doctor’s prescription – New rules announced

CSIR-IIIM launches two-month certificate course On cGMP-compliant herbal drug manufacturing

CSIR-IIIM launches two-month certificate course On cGMP-compliant herbal drug manufacturing