Shares of Sun Pharmaceuticals dived 21 percent intra-day, just days after more than 40 states in the US filed a lawsuit of alleging drug manufacturers of artificially inflating the prices of the drugs.
The companies were alleged in manipulating and raising the price of generic drugs artificially to increase profits.
The stock price of the same was down 9.06 percent to Rs 398.10 per share on the National Stock Exchange while Nifty slipped 1.16 percent to 11,148.20.
“We believe the allegations made in these lawsuits are without merit and we will continue to vigorously defend against them,” says Sun Pharma spokesperson.
The Research Delta Advisor, Nimish Mehta says, “Company-specific regulatory action may be an issue because we have been hearing about cases filed against Teva and other companies for over-pricing some generic products in the US. So, that could be the case, but there are a few other Indian companies who are also involved.”