Meanwhile, the BSE Sensex was up 25.37 points, or 0.13%, to 19,717.04.
On BSE, 6.21 lakh shares were traded in the counter as against average daily volume of 1.17 lakh shares in the past one quarter.
The stock lost as much as 4.22% at the day's low of Rs 421. The stock hit a high of Rs 455.90 so far during the day. The stock had hit a 52-week low of Rs 370.50 on 1 March 2013. The stock had hit a 52-week high of Rs 578.30 on 4 September 2012.
The stock underperformed the market over the past one month till 13 May 2013, falling 0.49% compared with the Sensex's 7.94% gain. The scrip, however, outperformed the market in past one quarter, rising 3.77% as against Sensex's 0.43% rise.
The large-cap pharmaceutical company has equity capital of Rs 211.55 crore. Face value per share is Rs 5.
Ranbaxy Laboratories turned positive, erasing early fall, on optimism the company can now focus on improving core business operations following settlement of criminal and civil lawsuit with the US government that occurred at least six years ago. Marketmen opine that the amount of penalty, for which Ranbaxy Laboratories had already made provision in 2011, remaining constant augurs well for Ranbaxy Laboratories.
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Shares of Ranbaxy Laboratories had slumped in early trade in a knee-jerk reaction to the company's announcement of agreeing to pay $500-million penalty to the US government to settle criminal and civil charges on it made after market hours on Monday, 13 May 2013.
Ranbaxy Laboratories said that a previously disclosed investigation by the US Department of Justice (DOJ) of data integrity and manufacturing processes at certain Ranbaxy facilities in India has been concluded. The investigation related to conduct which occurred several years ago, and Ranbaxy's current management team fully cooperated with the DOJ, Ranbaxy said.
On 20 December 2011, Ranbaxy announced that it had signed a consent decree with the US Food and Drug Administration (USFDA), under which Ranbaxy had committed to further strengthen procedures and policies to ensure data integrity and to comply with Current Good Manufacturing Practice (cGMP). In anticipation of the settlement agreement with the DOJ, Ranbaxy had announced at that time its intention to make a financial provision of $500 million related to expected costs associated with resolving the DOJ investigation.
Under the terms of the final settlement agreement, Ranbaxy and its affiliates have agreed to settle alleged civil violations of the False Claims Act with the US, all 50 states and the District of Columbia. Separately, a US subsidiary, Ranbaxy USA, Inc., has agreed to plead guilty to a criminal information charging violations of the Food, Drug and Cosmetic Act and other criminal statutes. Ranbaxy's payments related to both the civil and criminal settlements total $500 million in aggregate. The financial provision Ranbaxy established in December 2011 will be sufficient to cover all material financial obligations under the agreement, Ranbaxy said.
Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy, stated, "Today's announcement marks the resolution of this past issue. We are pleased to continue bringing safe, effective and quality medicines to market for the benefit of consumers in the US and other parts of the world. While we are disappointed by the conduct of the past that led to this investigation, we strongly believe that settling this matter now is in the best interest of all of Ranbaxy's stakeholders; the conclusion of the DOJ investigation does not materially impact our current financial situation or performance. Ranbaxy has successfully launched several generic products recently and is well-positioned for future growth in the US and around the world with a robust pipeline of important products as it continues to build a strong global portfolio of branded and generic prescription and OTC pharmaceuticals. Our conduct is guided by our philosophy of 'Quality and Patients First'."
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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