Indian drug-companies too hit in US lawsuit on price manipulation - (Business Line via NewsPoints Desk)

  • Aurobindo Pharma, Cadila Healthcare, Glenmark, Lupin and Sun Pharmaceutical were among the 20 companies included in a US lawsuit accusing generic drugmakers of price fixing, as reported Business Line Monday.

  • In the litigation, 44 states filed litigation accusing companies of conspiring to raise the prices on generic drugs by more than 1000 percent in some cases.

  • "India has a price control mechanism, unlike the US where competition keeps prices in check," remarked Centrum Broking senior vice president Ranjit Kapadia, adding "the recent price-related allegations may build a case for the US too to look at mechanisms to control medicine prices.  "

  • "We believe the allegations made in these lawsuits are without merit and we will continue to vigorously defend against them," a Sun Pharma spokesperson said.

  • Shares in Sun Pharma fell as much as 20 percent on the news, while shares in Glenmark and Lupin were both down about 4 percent.

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