Ranbaxy gains over 2% as EU lifts export ban on Toansa unit

MUMBAI: Shares of Ranbaxy Laboratories gained momentum in trade after some positive development for the company which is facing exports ban.

The European drug regulator has said that drugs from the Ranbaxy’s Toansa unit are fine. The regulator also said that the corrective measures put in place by Ranbaxy to ensure GMP-compliance at the Toansa were satisfactory.

As a result the regulators will reinstate Toansa's GMP certificate, which was suspended in January 2014 after USFDA's import ban on the plant.

The regulator lifted suspension imposed on export of drugs produced at Ranbaxy's Toansa plant to the EU stating medicines produced at the site posed no risk to public health despite having a number of manufacturing deficiencies.

In a statement, the European Medicines Agency (EMA) said European regulatory authorities have finalised their assessment of reported non-compliance with Good Manufacturing Practice (GMP) at the Toansa plant.

Ranbaxy had voluntarily suspended exports from the Toansa plant to the EU in January 2014 after US Food and Drug Administration (USFDA) had banned the company from exporting drugs produced at the plant to be sold in the US.