Mumbai: Shares of Aurobindo Pharma took a hit on Friday following media reports that 20 U.S. states have filed a lawsuit against the company alleging price manipulation of two drugs.
The stock closed down 3.80 points at Rs 691.05 after opening at Rs 685.
It sank 4.25 per cent to Rs 665.35 and by noon it was trading at Rs 674.45, down 2.94 per cent .
The 20 US states had filed suits in a US district court against six drug manufacturers, including Aurobindo Pharma, for purported price manipulation of doxycycline hyclate, an antibiotic, and glyburide, a drug used for treatment of diabetes.
In a clarification sought by the BSE Aurobindo Pharma said it had received a subpoena in March 2016 requesting non-product specific information and they had cooperated with the Department of Justice on the issue, and provided relevant documents.
They had no received any further requests nor any further subpoena. Then on December 15 they became aware of the complaint from numerous states....