Ranbaxy Laboratories is trading 2% higher at Rs 561, in otherwise subdued market, on reports that the company is close to settling its long-pending issue with the US Food and Drugs Administration (USFDA) for a sum that could be between $300 million and $400 million.
According to reports, Ranbaxy's Japanese parent Daiichi is keen to resolve the FDA issues since it is crucial to the launch of the generic version of Lipitor, which has the potential to fetch the Indian major a profit of around $300-400 million, on sales of $600 million.
Ranbaxy holds the 180-day exclusivity rights for marketing a generic version of Lipitor in the US through a deal with current patent holder Pfizer.
The stock opened at Rs 555 and touched high of Rs 562, its highest level since January 27, 2011 on the NSE. A combined 298,200 shares have changed hands till 0952 hours.