Sun Pharma Shares Decline On $200 Million US Antitrust Litigation Payout

Shares of Sun Pharmaceutical Ltd. were trading lower on Friday after the company announced settlement of an antitrust litigation in the US entailing a payment of $200 million.

The subsidiaries of the company, Sun Pharmaceutical Industries, Inc. and Taro Pharmaceuticals USA, Inc. have signed a settlement agreement with the End Purchaser Plaintiffs in the In re Generic Pharmaceuticals Pricing Antitrust Litigation in the Eastern District of Pennsylvania, US, the Mumbai-based drugmaker said in a regulatory filing.

The settlement amounts may be reduced if more than a certain percentage of the total insured class members opt out of the putative class, the company stated.

Shares of Sun Pharma fell as much as 0.12% to Rs 1,690 apiece. They pared losses to trade 0.01% lower at Rs 1,691.90 apiece, as of 9:31 a.m. This compares to a 0.32% decline in the NSE Nifty 50.

The stock has risen 1.66% in the last 12 months and fallen 10.25% year-to-date. Total traded volume so far in the day stood at 0.05 times its 30-day average. The relative strength index was at 55.09.

Out of 43 analysts tracking the company, 35 maintain a 'buy' rating, five recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.5%.