UPDATE 1-Russian police search Novartis,Teva offices-report

Russian police searched the offices of four pharmaceutical companies in Moscow on Tuesday, including Swiss drug maker Novartis AG and Israel-based Teva, the business daily Vedomosti reported, quoting a police source.Vedomosti, in a report on its website, quoted the source as saying the searches were part of an investigation into an alleged carve-up of the market for supplying the state healthcare system with essential drugs.The government runs a system of subsidised purchases of drugs for low-income citizens. An investigation into the system showed the bulk of state supply contracts worth over $2 billion went to six distribution firms in 2006-08.A Novartis spokeswoman in Moscow confirmed the search took place and said the company was cooperating with the police. She declined to explain the substance of the investigation.Teva's spokesman in Israel confirmed police were in the company's Moscow office but said the visit concerned a "matter not related to Teva," adding that "it was only for the purpose of providing testimony."

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