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Ranbaxy Lab tumbles on FDA inspection of Toansa unit

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Last Updated : Jan 13 2014 | 11:56 PM IST

Ranbaxy Laboratories slumped 8.15% to Rs 425.50 at 13:53 IST on BSE after the company said it has received the form 483 with certain observations as a result of the recent US FDA inspection at its plant at Toansa, Punjab, India.

Meanwhile, the S&P BSE Sensex was up 281.18 points or 1.35% at 21,032.67.

On BSE, so far 9.73 lakh shares were traded in the counter as against average daily volume of 4.23 lakh shares in the past one quarter.

The stock hit a high of Rs 466 and a low of Rs 422.60 so far during the day. The stock had hit a 52-week high of Rs 511.95 on 10 January 2013. The stock had hit a 52-week low of Rs 253.95 on 2 August 2013.

The stock had outperformed the market over the past one month till 10 January 2014, rising 9.58% compared with the Sensex's 2.34% fall. The scrip also outperformed the market in past one quarter, gaining 17.88% as against Sensex's 2.4% rise.

The large-cap company has equity capital of Rs 211.87 crore. Face value per share is Rs 5.

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Ranbaxy Laboratories during market hours today, 13 January 2014 said that it has received the form 483 with certain observations as a result of the recent US FDA inspection at its active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India. Ranbaxy said that the company is assessing the US FDA observations, and will respond to the US FDA in accordance with the agency's procedure to resolve the concerns at the earliest. Ranbaxy said it 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. The company added that it stays firmly committed to its philosophy of quality and patients first.

Ranbaxy's clarification was following media reports that the US Food and Drug Administration (USFDA) has begun inspection of the company's active pharmaceutical ingredient or API manufacturing factory at Toansa in Punjab. The Toansa plant is crucial for the company as about 70% of APIs used in its formulations are said to be manufactured there. The USFDA inspection teams had in December 2012 written to the company identifying eight violations in the manufacturing practices at its main API (active pharmaceutical ingredient) unit at Toansa in Punjab, said media reports.

On 9 January 2014 Ranbaxy Laboratories said it has signed a product licensing agreement with EPIRUS Switzerland GmbH, a wholly-owned subsidiary of Boston-based EPIRUS Biopharmaceuticals, Inc. (EPIRUS), for BOW015 -- a biosimilar version of Infliximab.

Ranbaxy Laboratories reported a consolidated net loss of Rs 454.17 crore in Q3 September 2013 compared with net profit of Rs 754.17 crore in Q3 September 2012. Net sales rose 3.1% to Rs 2750.17 crore in Q3 September 2013 over Q3 September 2012.

Ranbaxy Laboratories, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy is a member of the Daiichi Sankyo Group.

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First Published: Jan 13 2014 | 1:54 PM IST

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