BackRanbaxy gets civil investigative demand from US on pricing issues
The company has received a demand relating to the manner in which it reports pricing data for certain products eligible for reimbursement under the Medicaid
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Drug maker Ranbaxy Laboratories Ltd said on Wednesday that it has received a civil investigative demand from the US department of justice related to pricing of drugs that it sold in the US.
“The company has received a civil investigative demand from the United States department of justice relating to the manner in which it reports pricing data for certain products eligible for reimbursement under the Medicaid program," Ranbaxy said in a note sent to the stock exchanges on Wednesday.
The civil investigative demand is a request for documents and information, and is not an allegation of wrongdoing or demand for compensation, the company added in the note.
“The company would fully cooperate with this civil investigation," Ranbaxy said on Wednesday.
A sector analyst with a Mumbai-based brokerage said the investigation could be related to an ongoing discussion that the company has with one of the US states on drug pricing.
Ranbaxy had said in July while announcing its April-June quarter results that it has made an additional provision of ₹ 238 crore towards a settlement with the US government during the quarter. This was in regard to an ongoing settlement discussions with certain government authorities in the US, but the company did not specify the issues.
Ranbaxy shares lost 0.24% to ₹ 597.65 on Wednesday on BSE, while the benchmark Sensex gained 0.52% to 26,631.29 points and the BSE Healthcare index gained 0.28% to close at 13,704.73.
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