Cloudy day for Sun Pharma, stock sinks 10 per cent

Sun Pharma stock on Friday corrected sharply after a new whistle-blower complaint was sent to SEBI against the company.

Between 2014 to 2017, Aditya Medisales had over Rs. 5,800 crore of transactions with Suraksha Realty which is being run by Sun Pharma's promoter, Sudhir Valia, said news reports on Friday. The complaint sent by the whistle-blower contains about 172 page document on Sun Pharma to SEBI.

During recent times, Sun Pharma has faced several issues regarding corporate governance. In the first complaint by whistleblower in 2018, it was alleged that Dilip Shanghvi, founder and MD of the company, along with Sudhir Valia, Shanghvi’s brother-in-law, were part of financial irregularities with Dharmesh Doshi who was one of a key name in the Ketan Parekh scam.

Sun Pharma recently was in news for the recall of one of its drug named Vecuronium Bromide Injection. The US-based subsidiary recalled about 13,918 cartons of Vecuronium Bromide Injection of strengths of 10 and 20 mg from the US market, due to reports of particulate matter identified in the product. 

In response to the media reports, Sun Pharma has said that it is has no knowledge of the allegations mentioned in the whistle-blower document. However, Sun Pharma has stated that the drug has a negligible contribution to its revenue.

Reacting to this development, the stock of Sun Pharma was at Rs. 378.20 per share, down by Rs. 48.95 or 11.46 per cent, at 14:36 hours, while SPARC was at Rs. 149.35 per share, down by Rs. 22.65 or 13.17 per cent on Friday.