Glenmark Pharma share price slipped 6 per cent to Rs 425 intraday during Wednesday’s early session after the news that it has charged with conspiring with competitors to raise prices for generic drugs, the Justice Department said on Tuesday. The charge was filed in US District Court in Philadelphia.
Glenmark reportedly conspired with other generic drug companies and pharmaceutical company Apotex Corp to increase the prices of cholesterol medication pravastatin and other generic drugs, the department of justice said.
Following the news, the share price touched an intraday low of Rs 424, falling 5.82 per cent against its previous close at Rs 450.20. Glenmark stock today opened at Rs 446.90 and touched an intraday high of Rs 448.95. However, it erased all its early gains and traded in the red.
Responding to the allegations the pharma company said it strongly disagreed with the charges. “We will continue to vigorously defend against these allegations that we know to be false, and we are confident the overwhelming evidence will make that clear,” the company said in a statement.
Over the last 13 months, Glenmark Pharma is the 5th company in the US to be charged in the connection with anti-trust violations in the generic pharmaceutical sector.
However, Glenmark stock has surged up 16 per cent within a month and 23 per cent year-to-date. The recent jump in the pharma stock price was on the back of receiving Indian regulatory approval to make and sell oral antiviral drug Favipiravir for treating mild-to-moderate COVID-19 cases. On the day of the announcement on approval, the stock price increased up by 35 per cent intraday.
The Pharma stock trades were higher than 20, 50, 100, and 200-day but lower than 5-day moving averages. The stock has fallen down by 6.5 per cent within a week.
Makan Delrahim, Assistant Attorney General of the department’s Antitrust Division said “by cheating through fixing prices, generic drug companies artificially raised prices even though prescription drug costs were already sky-high.”