The drug major on Tuesday said its arm DUSA Pharmaceuticals has reached a resolution with the US Department of Justice (DOJ) concerning the promotion of Levulan Kerastick and BLU-U on payment of $20.75 million.
DUSA Pharmaceuticals, Inc., (DUSA), a wholly-owned subsidiary of Sun Pharmaceutical Industries, on Tuesday (25 August) said that it fully cooperated with DOJ in its investigation of a complaint filed by a former employee in September 2016.Under the civil settlement agreements signed with the DOJ, DUSA will pay $20.75 million to resolve allegations related to the promotion of Levulan Kerastick and BLU-U.
DUSA had already made a provision towards this in its Q4 financials for the year ended 31 March 2020. The settlement does not constitute any admission by DUSA of any liability or wrongdoing.
As part of the resolution, DUSA and SPII have entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services. This agreement supplements SPII's existing compliance program, which is based upon established best practices and industry standards as well as the company's global code of conduct, which can be found here. Under the settlement agreement, the DOJ hasagreed not to bring any action seeking to exclude DUSA or SPII from participating in Federal health care programs.
In a separate agreement, DUSA also fully resolved all allegations made by the former employee.
Sun Pharmaceutical Industries reported a consolidated net loss of Rs 1,655.60 crore in Q1 June 2020 as compared to a net profit of Rs 1,387.48 crore in Q1 June 2019. Net sales declined 9.6% on a year-on-year (Y-o-Y) basis to Rs 7,467.19 crore in the first quarter of the financial year 2020-21.
Shares of Sun Pharmaceutical Industries fell 0.74% to Rs 529.40 on BSE. Sun Pharmaceutical Industries is a specialty generic manufacturing pharma company.
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