Shares of Aurobindo Pharma pared some initial losses to settle the day with nearly 1 per cent fall after the company filed a clarification on media reports that 20 US states had filed a lawsuit against the company for alleged price manipulation.
On BSE, the stock settled at Rs 691.05, down 0.55 per cent from its previous close. It had opened at Rs 685 and slumped 4.25 per cent to an intra-day low of Rs 665.35.
The scrip settled 0.61 per cent down at Rs 690 on NSE. It had opened at Rs 683.85 and plunged 4.34 per cent to an intra-day low of Rs 664.10.
According to news reports, 20 US states have filed a suit 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 reply to BSE, the pharma firm said, "On December 15, 2016, Aurobindo Pharma became aware of the complaint from numerous states, filed in Connecticut."
The company had earlier received a subpoena in March 2016 requesting non-product specific information. "We have cooperated with the Department of Justice and provided documents pursuant to that," it added.
Aurobindo Pharma said it has not received any further requests for information pursuant to the March 2016 subpoena nor has it received any further subpoenas.
The sales of the referred product -- Glyburide -- by the company's US subsidiary is 'not material' as it is around USD 1.1 million in FY 2016 as per the IMS data, it added.
The company will cooperate with all appropriate authorities, Aurobindo Pharma said.
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