Sun Pharmaceutical Industries announced a change of its local distributor in a move meant to ease investor concerns over its corporate governance.
India's largest pharma manufacturer was compelled to make the move after its shares fell last week following reports of a whistleblower complaint to regulators. The whistleblower alleged that Sun Pharma’s distributor Aditya Medisales had transactions worth more than $814 million with a company controlled by the executive director, Sudhir Valia, Suraksha Realty. The allegations also stated that the distributor has been used to fund companies owned by Valia.
Sun Pharma announced the swap from Aditya to a wholly owned unit as the new distributor for its domestic formulations business. The drugmaker also plans on selecting new auditors of its subsidiaries, and agreed to settle $345 million in overdue loan stemming from patent litigation.
Read the Reuters report