Pharma price collusion charges tough to prove: Prabhudas

Pharma stocks led by Sun Pharma were under pressure falling 4-5 percent when the bourses opened Friday over price collusion concerns in the US.

US prosecutors are undertaking an investigation into the suspected price collusion. An anti-trust probe by US Department of Justice about two years ago. The investigation now spans more than a dozen companies and about two dozen drugs.The companies that are believed to have received subpoenas include Mylan, Teva, Actavis, Impax, Covis, Endo, Sun Pharma and Taro.

Surajit Pal of Prabhudas Lilladher said the brokerage will not be taking price action for pharma stocks. It will be difficult to prove the charges of price collusion, he added.

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