Washington probes Ranbaxy's US office

Federal officials carried out a search at the New Jersey office of Ranbaxy Inc, the US subsidiary of India's largest pharmaceutical company Ranbaxy Laboratories Ltd, on February 14.

As a result, the Ranbaxy stock tanked five per cent to Rs 395.50 on the Bombay Stock Exchange today, though the benchmark BSE Sensex rose 2.47 per cent to close at 14,355.55. Ranbaxy was the top loser in the market during the day.

Confirming the development, Ranbaxy issued a statement later in the day saying that the search had come as a surprise as the company was not aware of any wrongdoing.

The company was co-operating with the investigation and its operations were running normally, the statement added.

"Ranbaxy continues operations in a complex business environment in one of the most highly competitive and regulated industries," the release said.

The US is Ranbaxy's largest market, accounting for around 30 per cent of its global turnover.

This is not the first time that Ranbaxy's overseas operations have drawn the attention of the authorities.

The company's UK subsidiary has been accused of overcharging local health bodies for generic medicine.