Ranbaxy turns weak as Germany bans import from Dewas

MUMBAI: Regulatory woes continue to trouble Ranbaxy Laboratories. After the USFDA, its Germany to ban importing anitbiotic drug from Dewas plant in Madhya Pradesh.

The European nation has found the pharma major in violation of standard manufacturing practices. The plant has barred from exporting antibiotic Cephalosporin.

The German regulator found various deficiencies at the plant including unsatisfactory investigations and deficiencies concerning design and operation of clean rooms.

It has also communicated its latest regulatory action against Ranbaxy to the European Medicines Agency (EMA).

“While the current action will not greatly impact the company, however a potential similar action from other members of the EMA could be a possible threat as the EMA economies almost account for 16.5 per cent of its sales in FY2014. We remain neutral on the stock," said Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking.

At 11:00 a.m.; the stock was at Rs 626.50, down 0.65 per cent, on the BSE. It fell 1.43 per cent to touch intraday low of Rs 621.55 in trade today.