Ranbaxy Lab dips as Mohali unit under USFDA lens

The stock has underperformed the market by falling 30% since May 16, compared to 7.8% decline in benchmark Sensex.

Ranbaxy Laboratories has dipped 4.5% to Rs 334 on reports that the company’s manufacturing facility at Mohali has come under the USFDA's scanner.

The stock opened at Rs 343 and touched four-year low of Rs 331 on BSE. A combined 643,025 shares have changed hands on the counter till 1047 hours on BSE and NSE.

The US Food and Drug Administration (FDA) is learnt to have issued a Form 483 to the company's manufacturing facility at Mohali a few months ago after finding deviations from its norms during an inspection of the plant, the Business Standard report suggests.

A Form 483 is issued by the FDA at the conclusion of an inspection to notify the company of objectionable conditions that might be in violation of the US Food, Drug and Cosmetic Act and related laws. However, it does not prevent a company from making regulatory filings from that unit, added report.

Meanwhile, the stock of pharmaceutical company has underperformed the market by falling 30% since May 16, after the Indian drug regulator Drug Controller General of India (DCGI) decided to review Ranbaxy's dossiers and applications based on which the company was granted drug approvals in the past. The benchmark Sensex has fallen 7.8% during the said period.