Monday, September 16, 2013

Ranbaxy faces new US regulation woes

MUMBAI: Shares in Indian generic drugs giant Ranbaxy Laboratories crashed by as much as 35 percent on Monday after the US Food and Drug Administration suspended imports from one of its factories.
The FDA issued an alert recently against the factory at Mohali in the northern state of Punjab, spelling more bad news for Ranbaxy which is struggling to live down a nearly decade-long history of US-led regulatory action.
Ranbaxy, one of the world’s biggest generic drugs makers, slid 34.99 percent to a day’s low of 297.25 rupees on the Bombay Stock Exchange in early trading.
By the end of the day, some brokerage firms had downgraded the stock, citing concerns over the future of the Mohali plant.
Shares closed down 30.27 percent at 318.85 rupees.
A spokesman for Ranbaxy, which was bought by Japan’s Daiichi Sankyo group in 2008, said “the company has so far not received any communication from the US FDA” and it was seeking information.
The FDA website did not explain the reasons for the “import alert.”

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