Ranbaxy Lab hits 4-year low

The stock has fallen 25% in past one month on Drug Controller General of India investigation.

Ranbaxy Laboratories has dipped 4% to Rs 350, its lowest level since September 2009, on the Bombay Stock Exchange (BSE). The stock opened at Rs 365 and has seen a combined 1.06 million shares changing hands on the counter till 1040 hours on BSE and NSE.

The stock of pharmaceutical company has underperformed the market by falling 25% in past one month 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 BSE benchmark Sensex has declined 5%, while healthcare index dropped 4% during the same period.

Meanwhile, PTI report suggests that the Supreme Court will hear on June 24 a petition seeking probe against Ranbaxy Laboratories for allegedly manufacturing and selling adulterated medicines.

The PIL alleged that the company has been fined $500 million by the US Food and Drug Administration (USFDA) for making and selling "adulterated" drugs. It also sought sealing of all its manufacturing units here, including those in Paonta Sahib in Himachal Pradesh and Dewas in Madhya Pradesh, added report.