Shares of Biocon rose amid allegations of bribery against a subsidiary

Shares of Biocon Ltd. fluctuated between gains and losses before rising at the start of trading after the company denied allegations of bribery in the drug approval process.

The refusal came after PTI said, citing officials, that the Central Bureau of Investigation had detained joint drug controller S. Esvara Redi for allegedly receiving a bribe of 4 lakh rupees. This was part of the payment for the alleged phasing out of a phase three clinical trial of Insulin Aspart, an underdeveloped product of Biocon Biologics, PTI reported, citing CBI officials.

“We deny the allegations of bribery made in some media stories. All our product approvals are legitimate and supported by scientific and clinical data. Our bAspart is approved in Europe and many other countries. We follow the proper regulatory process for all our DCGI product approvals. The entire application process in India is online and all meeting minutes are publicly available. We are cooperating with the investigation agency, “a statement from Biocon Biologics said.

The CBI has registered a case of criminal conspiracy and corruption against Reddy and Dinesh Dua, director of Synergy Network India, among others, PTI reported.

The CBI claims that the regulatory work of Biocon Biologics was taken care of by Guljit Seti from Bioinnovat Research. The company and Synergy Network have a business relationship, which is why Dua agreed to pay the bribe, according to the report.

FIR also calls Seti; L Praveen Kumar, Associate Vice President and Head of National Regulatory Affairs at Biocon Biologics; and Animesh Kumar, assistant drug inspector at CDSCO, the report said.

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