Ranbaxy Laboratories fell 2.59% to Rs 360.50 at 10:45 IST on BSE on reports the company recalled more than 64,000 bottles of the generic version of a cholesterol-lowering drug in the United States after dosage mix-up was detected.
Meanwhile, the BSE Sensex was down 73.11 points, or 0.33%, to 21,846.68.
On BSE, so far 2.08 lakh shares were traded in the counter, compared with an average volume of 6.04 lakh shares in the past one quarter.
The stock hit a high of Rs 369 and a low of Rs 356 so far during the day. The stock hit a 52-week high of Rs 490.15 on 6 January 2014. The stock hit a 52-week low of Rs 253.95 on 2 August 2013.
The stock had outperformed the market over the past one month till 7 March 2014, rising 8.71% compared with the Sensex's 7.57% rise. The scrip had, however, underperformed the market in past one quarter, falling 14.81% as against Sensex's 4.40% rise.
The large-cap company has an equity capital of Rs 211.89 crore. Face value per share is Rs 5.
According to media reports, Ranbaxy Laboratories has recalled tablets of atorvastatin calcium, the generic name for Pfizer Inc's Lipitor, after a pharmacist found a 20-milligram tablet in a sealed bottle marked for 10-milligram tablets.
The FDA declared a Class II recall, which signifies a remote chance of severe adverse consequences or death due to the product flaw. This is at least the third recall of generic Lipitor over the past two years. The drug manufacture has been under US Food and Drug Administration (USFDA) scanner for sometime, reports added.
In January 2014, USFDA had prohibited Ranbaxy from manufacturing and distributing active pharmaceutical ingredients (APIs) from its facility in Toansa, India, for FDA-regulated drug products.
In February 2014, Ranbaxy suspended shipment of pharmaceutical ingredients produced at its Toansa and Dewas plants in India. The company said it was currently examining processes and controls at all its active pharmaceutical ingredients (API) manufacturing and quality units. This action has led to temporarily putting on hold shipments from company's API facilities of the Toansa and Dewas plants.
This voluntary decision was taken as a precautionary measure and out of abundant caution to better allow the company to assess and review the processes and controls. The company said it will resume shipments after reassuring them about the processes and controls at these facilities, the company said.
A committee of the board was constituted in February 2014 as the "quality & integrity committee". The committee's objective is to help and assure good governance to all Ranbaxy stakeholders. Its primary role is to provide oversight on the company's manufacturing and quality operations, systems, organization and integrity, Ranbaxy Laboratories said in a statement.
Ranbaxy Laboratories reported a consolidated net loss of Rs 158.94 crore in Q4 December 2013, lower than net loss of Rs 492.44 crore in Q4 December 2012. Sales rose 7% to Rs 2860 crore in Q4 December 2013 over Q4 December 2012.
Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of generic medicines. Ranbaxy is a member of the Daiichi Sankyo Group.
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