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Ranbaxy Laboratories has moved higher by 3.4% at Rs 455, bouncing back 8% from day’s low after the pharmaceutical company has agreed to pay $500 million (approximately Rs 2,743 crore) to resolve fraud allegations that the company sold adulterated drugs and lied about it to US regulators.
The stock opened at Rs 425 and hit a low of Rs 421 in early morning deals on NSE. A combined 3.49 million shares changed hands on the counter till late noon deals against an average less than one million shares that were traded daily in past two weeks on NSE and BSE.
The company also agreed to pay a criminal fine and forfeiture totaling US $150mn and to settle civil claims under the False Claims Act and related State laws for US $350mn. Ranbaxy USA pleaded guilty to three felony counts under Federal Food Durg and Cosmetics Act (FDCA), and four felony counts of knowingly making materially false statements to the Food and Drug Administration (FDA).
“With this settlement, the long lawsuit is now over for the company and since the amount in terms of penalty is same as earlier provided by the company, it’s positive for the company both from short and long term perspective,” says Ms. Sarabjit Kour Nangra (VP-Research- Pharma) at Angel Broking.
The stock opened at Rs 425 and hit a low of Rs 421 in early morning deals on NSE. A combined 3.49 million shares changed hands on the counter till late noon deals against an average less than one million shares that were traded daily in past two weeks on NSE and BSE.
The company also agreed to pay a criminal fine and forfeiture totaling US $150mn and to settle civil claims under the False Claims Act and related State laws for US $350mn. Ranbaxy USA pleaded guilty to three felony counts under Federal Food Durg and Cosmetics Act (FDCA), and four felony counts of knowingly making materially false statements to the Food and Drug Administration (FDA).
“With this settlement, the long lawsuit is now over for the company and since the amount in terms of penalty is same as earlier provided by the company, it’s positive for the company both from short and long term perspective,” says Ms. Sarabjit Kour Nangra (VP-Research- Pharma) at Angel Broking.
