Ranbaxy falls over 10% on US FDA import ban

Ranbaxy falls over 10% on US FDA import ban
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First Published: Wed, Sep 17 2008. 02 49 PM IST
Updated: Wed, Sep 17 2008. 02 49 PM IST
Mumbai: Shares of Ranbaxy Laboratories Ltd plunged over 10% on the bourses on 17 September, after the US health regulator blocked imports of generic drugs produced by the company in two of its plants due to “serious” manufacturing deficiencies.
On the Bombay Stock Exchange, the shares of the company dipped 10.54% and hit an intra-day low of Rs363.10, while on the National Stock Exchange, they registered a decline of 10.19% and saw an intra-day low of Rs362.10.
The Food and Drug Administration (FDA) has issued two warning letters to Ranbaxy Laboratories and an import alert for generic drugs produced by Ranbaxy’s manufacturing plants in Dewas, Madhya Pradesh, and Paonta Sahib, including the Batamandi unit in Uttar Pradesh.
The warning letters identify the agency’s concerns about deviations from US “current good manufacturing practices requirements” at the pharmaceutical major’s two manufacturing facilities, US FDA has said in a statement.
On the volume front, the scrip witnessed good trading activity as over 1.45 million shares exchanged hands on NSE and on BSE the figure stood at 686,000.
The scrip regained some lost ground and was trading at Rs377.10, down 7.1% on the BSE and at Rs376.30, down 6.67% on the NSE.
Reacting to the FDA decision, Ranbaxy today said “it is very disappointed with the action FDA has taken. The company has responded to each concern FDA has raised during the past two years and had thought that progress was being made.”
“We are, however, pleased that FDA’s testing and review led the agency to conclude that there is no reason to question the safety or effectiveness of Ranbaxy’s drugs,” the company said in a statement.
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First Published: Wed, Sep 17 2008. 02 49 PM IST
More Topics: Ranbaxy | US FDA | Generic Drugs | NSE | BSE |