Sun Pharma hits 5-month low; stock slips 7%

The stock dipped 7% to Rs 475, its lowest level since June 6, 2018 on the BSE.

Shares of Sun Pharmaceutical Industries hit an over five-month low of Rs 475 per share, slipping 7%, and falling 9% from its early morning high on Tuesday on the back of heavy volumes. The stock was trading at its lowest level since June 6, 2018, declining 11% in past three days.

Sun Pharma was up 2% to Rs 521 in intra-day trade after the drug maker said that it has settled Modafinil antitrust litigation with certain US plaintiffs.

“Sun Pharmaceutical Industries and one of its wholly-owned subsidiaries have entered into settlements with certain plaintiffs in the In re Modafinil antitrust litigation matter pending in the United States district Court for the Eastern district of Pennsylvania,” the company said in a regulatory filing on Monday after market hours.

The settlements extend to all claims brought by the direct purchaser plaintiffs. The terms of the settlements are confidential, it added.

Sun Pharma had reported a loss of Rs 2.2 billion during July-September quarter (Q2FY19) due to a one-time provision of Rs 12.1 billion for the estimated settlement amount payable to all the remaining plaintiffs related to the Modafinil antitrust litigation in the US.

Post Q2FY19 results, the stock underperformed the market, by falling 19% from Rs 590 on November 12, against 1.6% rise in the S&P BSE Sensex. It corrected 30% from its 52-week high level of Rs 679 touched on September 6 this year.

At 11:24 am; Sun Pharma was trading 6% lower at Rs 481, against 0.09% decline in the benchmark index. The trading volumes on the counter more than doubled with a combined 22.49 million equity shares changed hands on the BSE and NSE so far.