Cipla said it had received government notices seeking Rs 425 crore due to over pricing of certain drugs.
The demands are contrary to the orders passed by the Supreme Court of India and are related to the same drugs under litigation, the drugmaker said in a statement.
The company has received a legal advice which says the entire amount demanded by the National Pharmaceutical Pricing Authority (NPPA) is not tenable and sustainable, Cipla said.
NPPA is a government body that fines drugmakers in India if they over price certain drugs that have been identified under the national list of essential medicines.
Cipla stock price
On March 30, 2015, Cipla closed at Rs 702.50, up Rs 8.65, or 1.25 percent. The 52-week high of the share was Rs 752.45 and the 52-week low was Rs 385.00.
The company's trailing 12-month (TTM) EPS was at Rs 15.49 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 45.35. The latest book value of the company is Rs 125.68 per share. At current value, the price-to-book value of the company is 5.59.
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