Angel Broking puts SELL on Ranbaxy

Angel Broking puts SELL on Ranbaxy

Ranbaxy Laboratories has received the final approval from the US FDA to make and sell the generic version of Sciele Pharma’s peptic ulcer tablet Robinul for 1 mg and 2 mg dosages.

The company said that it plans to launch the drug in 4QCY2009. The annual market sales of Robinul are worth $26 million in the US.

The stock is up 39% in the past three months to Rs312, and is currently trading at 2.3x CY2010E earnings. We recommend a SELL rating on the stock, with a target price of Rs250.

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