'FDA denial on Flomax could turn a big dampner for Ranbaxy'
Gaurang Shah, AVP, Geojit BNP Paribas to ET Now on Ranbaxy stocks.
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| Gaurang Shah, AVP, Geojit BNP Paribas Financial Services
We are seeing a bit of a dampener sentiment coming in from Ranbaxy, which has been denied the US FDA for a particular generic drug called Flomax which could have actually earned a $100 million. From a company's perspective, do you think this will be a big dampener at least for the near term?
Gaurang Shah: Definitely so, and given the fact that in spite of Daiichi Sankyo coming over into Ranbaxy, we are having these kinds of negative news from the US FDA coming... I do not think this is just a one-off case, may be we will have a couple of more negatives coming in from the US FDA. From that point of view, Ranbaxy amongst the pharma may be the defensive 'yes' but it is not one of choice. In case, Ranbaxy has to rebound to closer to these 500 levels, I would advise to possibly book out of Ranbaxy. There are definitely better players available, I spoke about Lupin, Aurobindo, Biocon, Stride Arcolabs, Sun Pharma, these are the players that one should look at.
We are seeing a bit of a dampener sentiment coming in from Ranbaxy, which has been denied the US FDA for a particular generic drug called Flomax which could have actually earned a $100 million. From a company's perspective, do you think this will be a big dampener at least for the near term?
Gaurang Shah: Definitely so, and given the fact that in spite of Daiichi Sankyo coming over into Ranbaxy, we are having these kinds of negative news from the US FDA coming... I do not think this is just a one-off case, may be we will have a couple of more negatives coming in from the US FDA. From that point of view, Ranbaxy amongst the pharma may be the defensive 'yes' but it is not one of choice. In case, Ranbaxy has to rebound to closer to these 500 levels, I would advise to possibly book out of Ranbaxy. There are definitely better players available, I spoke about Lupin, Aurobindo, Biocon, Stride Arcolabs, Sun Pharma, these are the players that one should look at.
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