Shares of Ranbaxy Laboratories were extremely volatile. The stock lost as much as 7.30% at an intraday low of Rs 301.75 in early trade. However, the stock bounced as much as 3.81% to hit an intraday high of Rs 337.90 after the media reports of court dismissing lawsuit against the company hit the market in the early afternoon trade.
Meanwhile, the S&P BSE Sensex was up 232.98 points, or 1.26%, to 18.773.87.
On BSE, 6.78 lakh shares were traded in the counter as against an average daily volume of 1.64 lakh shares in the past one quarter.
The stock hit a low of Rs 301.75 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 337.90 so far during the day. The stock had hit a 52-week high of Rs 578.30 on 4 September 2012.
The stock had underperformed the market over the past one month till 24 June 2013, falling 16.60% compared with the Sensex's 5.90% fall. The scrip had also underperformed the market in past one quarter, sliding 24.62% as against Sensex's 1.04% fall.
The large-cap pharmaceutical company has an equity capital of Rs 211.55 crore. Face value per share is Rs 5.
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According to reports, the Supreme Court (SC) today, 25 June 2013, dismissed a public interest litigation (PIL) seeking a probe against Ranbaxy Laboratories for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company.
A bench of justices A K Patnaik and Ranjan Gogoi, however, allowed the petitioner advocate M L Sharma to file a fresh petition if he finds some evidence against the company in support of his allegation that the company is engaged in manufacturing and selling substandard drugs.
The SC bench said that it cannot decide the plea against the company on the basis of a judgement passed by a US court against Ranbaxy.
In his PIL, advocate M L Sharma had alleged that Ranbaxy was fined $500 million by the US Food and Drug Administration (USFDA) for making and selling adulterated drugs. It also sought sealing of all its manufacturing units here, including those in Paonta Sahib in Himachal Pradesh and Dewas in Madhya Pradesh.
Sharma alleged that despite Ranbaxy pleading guilty to supplying adulterated drugs in the US and it being fined such a huge amount, the Centre has not taken any action to prohibit or ban the drugs made by the company.
He also sought action against Indian drug regulator, Central Drug Standards Control Organisation (CDSCO), for permitting Ranbaxy to sell drugs in India, especially in the wake of the results of the USFDA probe against the company.
Ranbaxy Laboratories' consolidated net profit declined 89.9% to Rs 125.76 crore on 34.2% decline in net sales to Rs 2439.82 crore in Q1 March 2013 over Q1 March 2012. The company said that the profitability in Q1 March 2013 was lower than in Q1 March 2012 primarily because of the base effect. The revenue and profitability in Q1 March 2012 was boosted by contribution from exclusivity drug launches.
Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of generic medicines. Ranbaxy serves its customers in over 150 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 43 countries and manufacturing operations in 8 countries. Ranbaxy is a member of the Daiichi Sankyo Group.
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