NEW DELHI: Notching up gains for the second straight day, India’s largest drugmaker
Sun Pharma jumped 5 per cent early Tuesday.
The company on Tuesday said it will make its unit the new distributor for its domestic formulations business, discontinuing super stockist arrangement with Aditya Medisales.
"Sun Pharma’s distribution related to India Domestic Formulations Business shall be transitioned from Aditya Medisales, the current distributor, to a wholly-owned subsidiary of Sun Pharma. This change will be made effective by Q1 FY20, post receipt of all requisite regulatory approvals," the company said in a BSE filing.
The stock has reversed its slide after it approached
market regulator Sebi to investigate the alleged second whistleblower complaint that spooked the market. It described the matter as selective leak of information on allegations by a whistleblower which has "damaged its reputation and eroded market value".
Financial advocacy website and magazine Moneylife had offered institutional
investors access to the second whistleblower letter, prompting Sun's complaint to Sebi.
Sun complained that such access creates a "great asymmetry in the information circulating among analysts, investors and media, leading to intense speculation".
Shares of the company were 5.13 per cent up at Rs 418.80 on the BSE around 10.55 am.