Mumbai: Shares of pharmaceutical firm Ranbaxy plunged over 6% on the domestic bourses on 26 September, amid reports of the (US) President’s Emergency Plan for AIDS Relief (PEPFAR) suspension of funding for three of its generic HIV/AIDS drugs.
Shares of the company touched an intra-day low of Rs278, down 6.14% from the last close, after opening at Rs292 on the Bombay Stock Exchange.
However, the company said its pharmaceutical products, including the HIV/AIDS drugs are safe and that it is committed to working with US FDA.
On 25 september, PEPFAR had said it would suspend funding for the HIV/AIDS drugs to Ranbaxy till the time issues raised by the US FDA on manufacturing deficiencies related the company’s two plants located at Dewas and Ponta Sahib, where these drugs are produced, were resolved.
On the National Stock Exchange the scrip slid 6.08% to touch the day’s low of Rs278.10. Over 3.74 million shares got traded on the bourses.
Following the Food and Drug Administration’s (FDA) announcement on 16 September, 2008 that it would partially restrict drug imports manufactured by Ranbaxy, leaders of the US Congressional Committee on Energy and Commerce have increased the area of their inquiry into the FDA’s handling of the case to include drugs manufactured by the company for PEPFAR.
Shares of the company were later trading at Rs279.55, down 5.62% on the BSE, and at Rs279.65 on the NSE.