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Last Updated : Jul 01, 2020 10:38 AM IST | Source: Moneycontrol.com

Glenmark Pharma share price tumbles 5% on price-fixing allegations in US

The charge was filed in US District Court in Philadelphia. The price-fixing conspiracy allegedly took place from 2013 to 2015 and caused a loss to victims of at least $200 million, according to the department.

 
 
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Glenmark Pharma share price tumbled almost 5 percent intraday on July 1 after Glenmark Pharmaceuticals USA was charged for conspiring to fix prices for generic drugs, the US Justice Department said in a statement, a Reuters report said.

Glenmark allegedly conspired with pharmaceutical maker Apotex Corp and other generic drug companies to increase the prices of cholesterol medication pravastatin and other generic drugs, the department said.

Glenmark said it strongly disagreed with the charge. “We will continue to vigorously defend against these allegations that we know to be false, and we are confident the overwhelming evidence will make that clear,” the company said in a statement.

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The charge was filed in US District Court in Philadelphia. The price-fixing conspiracy allegedly took place from 2013 to 2015 and caused a loss to victims of at least $200 million, according to the department.

The charge against Apotex was resolved in May by a deferred prosecution agreement in which the company agreed to pay $24 million.

The stock price has however surged almost 120 percent in the last 3 months after the company received Indian regulatory approval to make and sell oral antiviral drug favipiravir for treating mild-to-moderate COVID-19 infections in the country.

CLSA had downgraded the stock to sell after Q4 earnings. "Flat earnings outlook for FY21, limited scope for debt reduction and limited catalysts make us downgrade our rating from buy to sell for Glenmark," said the global brokerage which cut its FY22 EPS estimate by 4 percent and lowered target to Rs 420 from Rs 440 per share.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jul 1, 2020 10:37 am
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