India's Cipla says gets govt demand on pricing

Thu Jul 9, 2009 5:12am EDT
 
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MUMBAI, July 9 (Reuters) - India's Cipla Ltd (CIPL.BO) has received notice from a government agency demanding 665.8 million rupees ($13.6 million) for alleged over pricing two drugs, the drugmaker said on Thursday.

The company said the notice was contrary to a Supreme Court ruling and it had got legal advice the demand was not tenable.

The demand from National Pharmaceutical Pricing Authority pertains to asthma drug salbutamol and norfloxacin, which is used to treat infections, Cipla said in a statement to the stock exchanges.

By 0843 GMT, Cipla shares were up 2.3 percent at 262.55 rupees in a Mumbai market .BSESN that was 0.4 percent higher. ($1=48.8 rupees) (Reporting by Narayanan Somasundaram; Editing by Ranjit Gangadharan)

 

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