Ranbaxy soars on bourses; m-cap swells by Rs 651 cr

Shares of Ranbaxy Laboratories today settled with a gain of over 3 per cent that pushed up the company's market capitalisation by Rs 651 crore.
The scrip rallied following reports that the Indian drug major along with Teva Pharmaceuticals has agreed to settle a probe by the New York Attorney General. They will pay the New York state USD 300,000 and have agreed to refrain from similar agreements in the future.
The settlement concludes an investigation into the pact relating to atorvastatin calcium, the generic version of Pfizer Inc's Lipitor - a drug used to treat high cholesterol.
The stock opened with modest gains on the BSE and then jumped 4.51 per cent to an intra-day high of Rs 367. At the end of the day it was quoted at Rs 362.15, up 3.13 per cent over its previous close. The company's m-cap jumped by Rs 651 crore to Rs 15,347 crore.

"The settlement is positive for the company and since the settlement amount will not significantly impact the company, we remain neutral on the stock," Angel Broking VP - Research - Pharma Sarabjit Kour Nangra said in a research note.
Under the terms of the settlement, the two generic drug makers will end a 2010 agreement of not challenging each other's rights to sell certain drugs exclusively in the US.