Aurobindo Pharma opened 4% lower at Rs.427.60 and went down to its intraday low at Rs.425.15 but from there it also shot up briefly to an intraday high at Rs.476. It is currently at Rs.444 levels.
The stock price fell on news that it is facing a class action suit, along with Emcure Pharma in a Florida court. The companies are accused of concealing information about the cancer-causing agent, N- nitrosodimethylamine (NDMA) presence in metformin medicine - the most prescribed oral pharmaceutical drug for patients with type-2 diabetes.
This petition was filed on the basis of tests done by an online pharmacy, Valisure, which even while posting the results said that Aurobindo had passed the FDA test for the NDMA presence.
The company is yet to post any comment or clarification on this news.