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Sun Pharma stock nosedives 10% as SEBI plans to reopen insider trading case

Reacting negatively to the whistleblower allegations, shares of Mumbai-headquartered company declined as much as 10.22 per cent in intra-day trade to Rs 441.95 apiece on the BSE, after opening lower at Rs 467.

twitter-logoBusinessToday.In | December 3, 2018 | Updated 14:14 IST
Sun Pharma stock nosedives 10% as SEBI plans to reopen insider trading case

Shares of Sun Pharmaceutical Industries plunged over 10 per cent in early trade Monday on the Bombay Stock Exchange after media reports suggested that capital market regulator SEBI is likely to reopen the investigation into the insider trading case against the company and its promoters.

Investors turned jittery after a whistleblower claimed that the drug maker's founder and managing director Dilip Shanghvi and his brother-in-law Sudhir Valia were engaged in financial irregularities with Dharmesh Doshi, an important figure from the 2001 Ketan Parekh scam, according to a Mint report.

Reacting negatively to the whistleblower allegations, shares of Mumbai-headquartered company declined as much as 10.22 per cent in intra-day trade to Rs 441.95 apiece on the BSE, after opening lower at Rs 467. The stock, which was the top looser on Sensex, touched an intra-day high and low of Rs 467 and Rs 441.95, respectively.

In a similar fashion, stocks of company were trading at Rs 456.25, down 7.38 per cent on the National Stock Exchange.

In a separate development, the pharma company has received final approval from US FDA 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 USD 67 million in the US for the 12 months ended September 2018," Sun Pharmaceutical Industries said in a filing to BSE.

The commercialisation of this product in the US market is expected in Q4FY19, it said.

The company also informed the exchange that scheme of Arrangement with Sun Pharma Global FZE and their respective members and creditors for demerger of the Specified Undertaking of Sun Pharma Global FZE into the company, is effective from December 01, 2018 as it has filed the National Company Law Tribunal order along with Scheme of Arrangement in E-form INC-28 with Registrar of Companies, Gujarat today.

Meanwhile, the BSE 30-share barometer, Sensex, was trading at 36,199.79, up 5.49 points, or 0.02 per cent.

Edited by Chitranjan Kumar

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