Ranbaxy Laboratories is trading lower by 2% at Rs 389, weighed by the huge outflow of funds, after the pharmaceutical company said it will make a $500 million provision to end a long-running compliance dispute with US authorities.
“The company intends to make a provision of $500 million in connection with the investigation by the US Department of Justice, which the company believes will be sufficient to resolve all potential civil and criminal liability," Ranbaxy said in a filing to the stock exchanges.
“The company has signed an agreement with the FDA and will improve procedures and policies to ensure data integrity and comply with good manufacturing practices," it added.
The stock opened at Rs 400 and hit a low of Rs 385 on the National Stock Exchange (NSE). A combined 6,50,000 shares have changed hands on the counter so far on the NSE and BSE.