On Friday, shares of Sun Pharmaceutical Industries Limited rose 4 percent to Rs 497.80 in early trade after its US subsidiary, Taro Pharma reached a settlement agreement with the US Department of Justice (DoJ), Antitrust and Civil divisions to pay $205.7 million to settle the generic drug price-fixing allegations against the company.
"Taro Pharmaceutical Industries Ltd. (NYSE: TARO) announced today that its wholly-owned subsidiary, Taro Pharmaceuticals U.S.A., Inc. ("Taro" or the "Company"), has resolved all cases involving the Company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division ("DOJ") into the U.S. generic pharmaceutical industry," the company said in a stock exchange filing on Friday.
"Under a Deferred Prosecution Agreement reached with the DOJ, the DOJ will file an Information for conduct that took place between 2013 and 2015. If the Company adheres to the terms of the agreement, including the payment of $205.7 million, the DOJ will dismiss the Information at the end of a three-year period," it added.
The Company has also reached a framework understanding with the DOJ Civil Division, in which the Company has agreed to pay $213.3 million to resolve all claims related to federal healthcare programs.