Sun Pharma Arm Resolves Product Promotion Investigation With U.S. Justice Department
Signage is displayed at the Sun Pharmaceutical Industries Ltd. headquarters in Mumbai, India. (Photographer: Kanishka Sonthalia/Bloomberg)

Sun Pharma Arm Resolves Product Promotion Investigation With U.S. Justice Department

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Drug major Sun Pharmaceutical Industries Ltd. on Tuesday said its arm DUSA Pharmaceuticals has reached a resolution with the U.S. Department of Justice concerning the promotion of Levulan Kerastick and BLU-U on payment of $20.75 million (around Rs 148.51 crore).

"DUSA fully cooperated with DOJ in its investigation of a complaint filed by a former employee in September 2016,” Sun Pharmaceutical Industries said in a regulatory filing.

Under the civil settlement agreements signed with the justice department, DUSA will pay $20.75 million to resolve allegations related to the promotion of Levulan Kerastick (aminolevulinic acid HCL) and BLU-U, it stated.

The product is indicated for the treatment of minimally to moderately thick actinic keratoses of the face or scalp.

Sun Pharma said DUSA had already made a provision towards this in its fourth quarter financials for the year ended March 31, 2020.

"The settlement does not constitute any admission by DUSA of any liability or wrongdoing," the company added.

As part of the resolution, DUSA and Sun Pharma have entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services.

Under the settlement pact, the DOJ has agreed not to bring any action seeking to exclude DUSA or Sun Pharma from participating in Federal health care programs.

In a separate agreement, Sun Pharma said DUSA also fully resolved all allegations made by the former employee.

Shares of Sun Pharma were trading 0.18% lower at Rs 532.40 apiece on BSE.

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