Cipla slips as Supreme Court asks company to deposit Rs 175.07 crore for drug overcharging

Cipla fell 0.52% at Rs 517 at 09:35 IST on BSE after the Supreme Court asked the company to deposit Rs 175.07 crore within a period of six weeks with regard to cases pertaining to overcharging of certain drugs.

The announcement was made after market hours on Friday, 22 July 2016.

Meanwhile, the S&P BSE Sensex was down 32.42 points or 0.12% at 27,770.82

On BSE, so far 12,472 shares were traded in the counter as against average daily volume of 1.87 lakh shares in the past one quarter. The stock hit a high of Rs 518 and low of Rs 513.40 so far during the day. The stock had hit a 52-week high of Rs 748 on 17 August 2015. The stock had hit a 52-week low of Rs 458.25 on 25 May 2016.

The large-cap company has equity capital of Rs 160.72 crore. Face value per share is Rs 2.

Cipla said that the writ petitions filed in the Bombay High Court that were pending before the Supreme Court have been retransferred to the Bombay High Court for a final hearing. The Supreme Court has directed the government to recover 50% of the overcharged amounts. Accordingly, the company is required to deposit Rs 175.07 crore within a period of six weeks. The interim order restraining the government from recovering the balance amount has been continued by the Supreme Court, the company said. The Bombay High Court will now hear these matters on merits, it added. Cipla made the announcement with reference to its earlier disclosures regarding pending legal cases relating to alleged overcharging in respect of certain drugs under the Drugs (Price Control), Order, 1995.

Cipla's consolidated net profit fell 68.9% to Rs 80.87 crore on 5.3% growth in total income to Rs 3321.28 crore in Q4 March 2016 over Q4 March 2015.

Cipla is a global pharmaceutical company. The company's portfolio includes over 1,500 products across wide range of therapeutic categories with one quality standard globally.

Powered by Capital Market - Live News