Shares of Aurobindo Pharma declined 1% on Tuesday after the company clarified that various US states have filed a 2nd lawsuit alleging the company and other drug makers had violated antitrust laws by fixing prices and allocating customers.
"On May 10, 2019, the Attorney General of the State of Connecticut and additional Attorneys' General of various US states filed a second lawsuit in Federal Court similarly alleging that Aurobindo and other companies in the US generic drug industry had violated antitrust laws by fixing prices and allocating customers (the "Second State AG Action")," the company said in a press note today.
The Second State AG Action includes additional parties and additional products, which were not referenced in the First State AG Action.
"While Aurobindo is currently reviewing the Second State AG Action, we expect that we will be filing papers with the Federal Court in due course denying each of the relevant accusations," the company added.
The pharma major further claimed that it does not, at this time, anticipate that these matters will have a material impact on the company’s operations or business results.
Notably, in December 2016, the US states filed a lawsuit against Aurobindo and other companies for violating antitrust laws by fixing prices. Later on June 18, 2018, an Amended Complaint was filed in the First State AG Action.
Aurobindo has denied all the relevant accusations in the First State AG Action and is vigorously defending against the matter, the company added.
Aurobindo Pharma Ltd's share price is currently Rs711.20, down by Rs6.1 or 0.85%, from its previous close of Rs717.30 on the BSE.
The scrip opened at Rs718 and has touched a high and low of Rs719 and Rs702.45, respectively. So far, 13,38,084 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs42,027.73cr.
No comments