NSE seeks clarification from Biocon in relation to Joint Drugs Controller bribery case

The National Stock Exchange (NSE) has sought clarification from Biocon Limited in relation to the firm's subsidiary being caught by the CBI for allegedly offering bribes to waive off a trial of a new drug, as per a PTI report. NSE stated that the company's response is awaited. 

Officials stated on Tuesday, that the CBI has arrested Joint Drugs Controller S Eswara Reddy, who is number two at the DCGI office, for allegedly receiving a Rs 4 lakh bribe to waive the phase three clinical trial of the Insulin Aspart injection which is a product of Biocon Biologics under development to manage Type 1 and Type 2 diabetes. 

Biocon Biologics is a subsidiary of Kiran Mazumdar-Shaw's pharma company, Biocon. The company has denied these allegations.

Apart from Reddy, the CBI has arrested Associate Vice President of Biocon Biologics L Praveen Kumar and three others in a case of bribery, officials told new agency PTI.

The CBI has also taken into custody Dinesh Dua, director at Synergy Network India Private Limited. Dua allegedly gave Reddy Rs 4 lakh bribe, Guljit Sethi, an alleged conduit of Biocon Biologics, as well as Assistant Drug Inspector Animesh Kumar in the case, reported PTI. 

Reddy, posted at the Central Drugs Standard Control Organisation (CDSCO) in New Delhi, and Dua were held on Monday during a 'trap operation' while the former was receiving the bribe to favour Biocon Biologics to waive phase 3 clinical trial of the insulin injection.

They were arrested after necessary paperwork and would be produced before the special court soon, they said.

The agency has booked all the five accused under IPC sections of criminal conspiracy, cheating, forgery and corruption.

On Tuesday, shares of Biocon ended 3.01 per cent higher at Rs 325.60 apiece on the NSE.

(With PTI inputs)

Also read: ‘Product approvals legitimate’: Kiran Mazumdar-Shaw on bribe allegations against Biocon