Ranbaxy falls on USFDA concerns; brokers downgrade
Macquarie and Jefferies downgraded Ranbaxy, saying the FDA uncertainty could put pressure on valuations in the near-term till further clarity emerged.
By PTI | Updated:
MUMBAI: Shares of Ranbaxy Laboratories today fell by over 2 per cent after the USFDA raised concerns about manufacturing practices at the pharmaceutical firm's Toansa plant in Punjab.
After falling 2.86 per cent to Rs 425.80 in intra-day trade, the drug major's scrip finally ended at Rs 429.80, down 1.95 per cent, on the BSE.
On the NSE, the stock settled at Rs 429.40, 2.14 per cent lower.
In the previous session, it had plunged over 5 per cent. The US Food and Drug Administration's observations regarding the manufacturing practices in the company's plant in Punjab comes after the recent inspection of the facility by the health regulator.
"On Saturday, January 11, 2014, Ranbaxy received the form 483 with certain observations as a result of the recent USFDA inspection at its active pharmaceutical ingredient (API) plant at Toansa, Punjab, India," the company had said yesterday.
An FDA Form 483 is issued to a company's management at the conclusion of an inspection when an investigator has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic Act and related Acts.
The USFDA has imposed ban on import of medicines manufactured at Ranbaxy's India-based factories into the US, the world's biggest drug market.
"The company is assessing the observations, and will respond to the USFDA in accordance with the agency's procedure to resolve the concerns at the earliest," Ranbaxy Laboratories said.
After falling 2.86 per cent to Rs 425.80 in intra-day trade, the drug major's scrip finally ended at Rs 429.80, down 1.95 per cent, on the BSE.
On the NSE, the stock settled at Rs 429.40, 2.14 per cent lower.
In the previous session, it had plunged over 5 per cent. The US Food and Drug Administration's observations regarding the manufacturing practices in the company's plant in Punjab comes after the recent inspection of the facility by the health regulator.
"On Saturday, January 11, 2014, Ranbaxy received the form 483 with certain observations as a result of the recent USFDA inspection at its active pharmaceutical ingredient (API) plant at Toansa, Punjab, India," the company had said yesterday.
An FDA Form 483 is issued to a company's management at the conclusion of an inspection when an investigator has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic Act and related Acts.
ADVERTISEMENT
The USFDA has imposed ban on import of medicines manufactured at Ranbaxy's India-based factories into the US, the world's biggest drug market.
"The company is assessing the observations, and will respond to the USFDA in accordance with the agency's procedure to resolve the concerns at the earliest," Ranbaxy Laboratories said.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Concord Biotech shares gain 6% after USFDA approval for Tofacitinib tabletsADVERTISEMENT
