Pharma cos see huge sell off: Sun Pharma, Dr Reddys hit hard
Pharma stocks came under massive selling pressure, falling by up to 7.4 per cent amid reports that US prosecutors could file charges by year-end in an investigation of generic makers over suspected price collusion.
Shares of Sun Pharma tanked 7.41 per cent, Suven Life tumbled 6.02 per cent and Dr Reddys Lab plunged 5.67 per cent on BSE.
Jubilant Life Sciences dropped 5.64 per cent, Aurobindo Pharma (5.61 per cent), Dishman Pharma (5.34 per cent), Glenmark Pharmaceuticals (4.78 per cent), Orchid Pharma (4.52 per cent), Alembic (4.30 per cent), Lupin(3.57 per cent), Cipla (2.60 per cent), Natco Pharma (2.78 per cent), Piramal Enterprises (1.59 per cent) and Cadila Healthcare (1.54 per cent).
Led by the losses in these stocks, the BSE healthcare index fell by 4.16 per cent to end at 15,150.31.
"Pharma companies are the major casualty due to price collusion in US market," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd.
According to media reports, the US investigation into price hikes may be nearing completion, culminating into charges of price collusion against companies/individuals by the year end.
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