Monday June 29, 01:00 PM

Aurobindo sues S.Africa on AIDS drug tender - paper

JOHANNESBURG (Reuters) - Aurobindo is taking South Africa's Treasury to court after it lost out to local drug firms in a $400 million contract for anti-retroviral AIDS drugs, a newspaper reported.

Business Day, citing court papers, said Aurobindo was suing the South African government on grounds it was unfairly overlooked for the contract even though its tendered price for the drugs was on average 30 percent cheaper than local products.

Almost 60 percent of the contract, issued for tender last year, was awarded to South African companies Aspen and Adcock Ingram. The rest went to smaller companies, the paper said, adding all parties declined to comment.

A Treasury spokeswoman could not immediately comment on the matter. Aurobindo could not immediately be reached.

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