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Ranbaxy Lab hits two month low, stock plunges 14% in one week

The stock has tanked 14% in past one week compared to 1.7% fall in benchmark S&P BSE Sensex.

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SI Reporter Mumbai
Last Updated : Jan 17 2014 | 12:37 PM IST
Ranbaxy Laboratories has dipped 4% to Rs 400 extending its past four days fall after the pharmaceutical company’s manufacturing facility in Toansa, Punjab received a Form 483 warning from the US Food and Drug Administration (US FDA).

The Toansa facility, which supplies 70-75% of pharma ingredients, is Ranbaxy's main active pharmaceutical ingredient (API) factory.

"On Saturday, January 11, 2014, Ranbaxy received the form 483 with certain observations as a result of the recent US FDA inspection at its API plant at Toansa, Punjab, India. The Company is assessing the observations, and will respond to the US FDA in accordance with the agency's procedure to resolve the concerns at the earliest,” Ranbaxy Laboratories said in a statement.

Ranbaxy continues to improve its systems and processes, and remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the Company. Ranbaxy stays firmly committed to its philosophy of quality and patients first, it added.

Meanwhile, on news report ‘Ranbaxy in tie-up to source raw material for Diovan’, the company today clarified that "We wish to inform you that while we do not disclose individual business transactions as a part of our normal course of business, Ranbaxy, as part of its strategy, evaluates alternate viable sourcing of materials from time to time and takes decisions based on the best value that can be derived in the interest of the Company."

The stock currently quoting at its lowest level since November last year on the BSE, has tanked 14% in past one week compared to 1.7% fall in benchmark S&P BSE Sensex.
 

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First Published: Jan 17 2014 | 12:33 PM IST

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