Shares of pharma major Ranbaxy today plunged over six per cent on the domestic bourses amid reports of US President's Emergency Plan for AIDS Relief (PEPFAR) suspension of funding for three of its generic HIV/AIDS drugs.
Shares of the company touched an intra-day low of Rs 269, and finally closed with a significant loss of over 8% at rs 272 when compared with yesterday's close. The counter saw trades of around 17.50 lakh shares on the BSE.
Yesterday, PEPFAR had said it would suspend funding for the HIV/AIDS drugs to Ranbaxy till the time issues raised by the USFDA on manufacturing deficiencies related the company's two plants located at Dewas and Ponta Sahib, where these drugs are produced, were resolved.
Following the Food and Drug Administration's (FDA) announcement on September 16, 2008 that it would partially restrict drug imports manufactured by Ranbaxy, leaders of the US Congressional Committee on Energy and Commerce have increased the area of their inquiry into the FDA's handling of the case to include drugs manufactured by the company for the Presidents Emergency Program for AIDS Relief (PEPFAR).
