New drug launch shot in arm for Ranbaxy

DALAL STREET SPIKES

Pharmaceutical major Ranbaxy Laboratories recovered on Monday after a sharp correction in the stock prices of late.

The stock gained 1.78 per cent after the company announced the launch of a new drug. An impressive volume of 1.84 lakh shares were accounted at the counter on the BSE.

Ranbaxy announced the launch of its Benign Prostatic Hyperplasia (BPH) formulation, branded Flotral (Alfuzosin). The drug, Alfuzosin is being introduced for the first time in India, the company said. The stock has lost ground off late after Schwarz Pharma AG stopped the clinical Phase II trial of Ranbaxy's prostate drug pamirosin due to unclear results in preclinical tests.

From a lifetime high of Rs 1,150.45 on November 5, 2004, the scrip plunged 10 per cent on aggressive selling pressure to Friday's low of Rs 1,035.20.

Brokers said Monday's gain was purely news-driven of the company launching a new drug.