Aurobindo Pharma plunges 4% on price manipulation charges

Shares of Aurobindo Pharma dropped over 4% in early trade today following media reports that 20 US states have filed a lawsuit against the company alleging price manipulation of two drugs.

On BSE, the stock opened at Rs 685 and slumped 4.25% to Rs 665.35. At 1200 hours, it was trading at Rs 674.45, down 2.94% from the previous close. The scrip opened at Rs 683.85 on NSE and went down by 4.34% to Rs 664.10. At 1200 hours, it was trading at Rs 673.35, down 3.01%.

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 the treatment of diabetes.

Meanwhile, BSE has sought clarification from Aurobindo Pharma on the issue, the reply for which is awaited. The benchmark Sensex was trading at 26,470.88, down 0.18%, from its previous close.