Aurobindo Pharma to pay penalty for insider trading

Market watchdog Securities and Exchange Board of India (SEBI) has imposed a total penalty of over Rs. 22 crore on Aurobindo Pharma, its promoter PV Ramprasad Reddy, his wife P Suneela Rani and also other related entities for violating insider trading norms. The regulator investigated the trading in the scrip of Aurobindo Pharma during the period from July 2008 to March 2009 to ascertain the regulatory violation.

The probe found that the promoter entities traded in the scrip of the company based on unpublished price sensitive information (UPSI) pertaining to the company's Licensing and Supply Agreements with Pfizer Inc and made unlawful gains.

In the Q1FY20, the company registered a 28.1 per cent yoy growth in its consolidated revenue to Rs. 5,444.6 crore while net profit grew by nearly 40 per cent yoy to Rs. 635.8 crore.

Aurobindo Pharma is engaged in manufacturing pharmaceutical products. It offers active pharmaceutical ingredients, intermediates and generic formulations like astemizole, domeperidone and omeprazole; anti-infective, oral and sterile antibiotics, pain management and osteoporosis segments. As on June 2019, the company has 386 final ANDA approval while tentative approval and under review was at 26 and 139 respectively.