Many Indian pharmaceutical companies named in an anti-trust lawsuit filed by 44 US states accusing them of price manipulation traded higher on Tuesday, recovering from the Monday lows.

On Monday, shares of all many companies fell sharply after a US multi-state lawsuit accused many Indian drug makers of colluding over pricing.

Along with Sun Pharmaceuticals and Dr Reddy’s Laboratories, Aurobindo Pharma Ltd, Glenmark Pharmaceuticals Ltd, Lupin Ltd, Wockhardt Ltd and Zydus Pharma are named in the lawsuit.

On Tuesday, shares of Sun Pharma, Lupin, Wockhardt, Zydus, Dr Reddy’s, and Glenmark traded higher, while those of Aurobindo Pharma bucked the trend. The American Depository Receipts of Dr Reddy’s, however, slumped 4.4%.

The Nifty Pharma index was up 1.1% at 8648.5 points, while the Nifty 50 was flat in noon trade.

The lawsuit alleged that the drug makers, in collusion with Teva Pharmaceuticals Inc, manipulated prices of over 100 generic drugs. Officials from Sun Pharmaceutical Industries, Aurobindo Pharma, and Glenmark Pharmaceuticals were also named in the lawsuit.

Most Indian pharmaceutical companies get much of their business from sales in the US.

Many Indian pharmaceutical companies named in an anti-trust lawsuit filed by 44 US states accusing them of price manipulation traded higher on Tuesday, recovering from the Monday lows.

On Monday, shares of all many companies fell sharply after a US multi-state lawsuit accused many Indian drug makers of colluding over pricing.

Along with Sun Pharmaceuticals and Dr Reddy’s Laboratories, Aurobindo Pharma Ltd, Glenmark Pharmaceuticals Ltd, Lupin Ltd, Wockhardt Ltd and Zydus Pharma are named in the lawsuit.

On Tuesday, shares of Sun Pharma, Lupin, Wockhardt, Zydus, Dr Reddy’s, and Glenmark traded higher, while those of Aurobindo Pharma bucked the trend. The American Depository Receipts of Dr Reddy’s, however, slumped 4.4%.

The Nifty Pharma index was up 1.1% at 8648.5 points, while the Nifty 50 was flat in noon trade.

The lawsuit alleged that the drug makers, in collusion with Teva Pharmaceuticals Inc, manipulated prices of over 100 generic drugs. Officials from Sun Pharmaceutical Industries, Aurobindo Pharma, and Glenmark Pharmaceuticals were also named in the lawsuit.

Most Indian pharmaceutical companies get much of their business from sales in the US.

On Monday, a spokesperson for Sun Pharmaceutical said: “We believe the allegations made in these lawsuits are without merit and we will continue to vigorously defend against them."

On Tuesday, shares of Sun Pharmaceuticals gained nearly 5% on technical rebound after it touched over a six-year low of 344.55 on Monday. They pared some gains to trade 3% higher later.

A technical analyst said the Sun Pharma stock may not fall much below current levels and on the upside may face resistance at 430 in the coming sessions.

On Tuesday, Aurobindo Pharma said it will move a US federal court against the new lawsuit filed against the company.

“While anti-trust investigations can go on for several years until liability is established, conclusive early findings can result in huge downsides for the firms involved," brokerage firm JM Financial said in a note on Tuesday.

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