The shares of Dr. Reddy's Laboratories will remain in focus today after the company announced that the US SEC has concluded its investigation into allegations that the company made improper payments to healthcare professionals in Ukraine and other countries, and decided to recommend no enforcement action.
The shares of the pharma giant had closed in the red with marginal losses on Tuesday. The stock ended the session nearly 0.6% lower at Rs 1,300.20 apiece on NSE, before the announcement.
In an exchange filing released in the post market hours of Tuesday, Dr. Reddy's announced that it has received a letter from the US Securities and Exchange Commission (SEC), stating that it has concluded the investigation and "does not intend to recommend any enforcement action against the Company at this time".
The company in 2020 had launched an investigation into an anonymous complaint regarding the alleged improper payments to healthcare professionals in Ukraine and potentially in other countries, which could act as a violation to anti-corruption laws in the US. The firm then disclosed the matter to the US Department of Justice, US SEC, and Indian market regulator Securities Exchange Board of India (SEBI).
Dr. Reddy's had noted that such investigations could result in government or regulatory enforcement actions against the company in US or other foreign jurisdictions, and could lead to civil and criminal sanctions as per applicable laws.
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The company said that following the disclosures, it fully cooperated with the said authorities.
Dr Reddy’s shares had seen significant decline after the initial disclosures in 2020-21. The stock gained more than 5% in the past one month, and over 15% in the past one year.
The stock's P/E ratio currently stands at 19.81. The company has a market capitalisation of more than Rs 1.08 lakh crore.
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Source Name : Economic Times