Ranbaxy gains after settling litigation with Texas

Ranbaxy Laboratories rose 1% to Rs 604 at 9:59 IST on BSE after the company said it settled its litigation with the State of Texas.

The announcement was made during trading hours today, 16 October 2014.

Meanwhile, the BSE Sensex was up 36.59 points, or 0.14%, to 26,385.92.

On BSE, so far 18,000 shares were traded in the counter, compared with an average volume of 1.29 lakh shares in the past one quarter.

The stock hit a high of Rs 604.50 and a low of Rs 596.25 so far during the day. The stock hit a record high of Rs 667.30 on 3 September 2014. The stock hit a 52-week low of Rs 306.05 on 27 January 2014.

The stock had outperformed the market over the past one month till 13 October 2014, falling 1.91% compared with 2.50% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 7.70% as against Sensex's 5.43% rise.

The large-cap company has an equity capital of Rs 212.01 crore. Face value per share is Rs 5.

Ranbaxy Laboratories said it has settled the litigation concerning its participation in the Texas Medicaid Program. Under the settlement agreement, Ranbaxy will make payments to the State of Texas totaling $39.75 million in a series of tranches through August 2015.

The claims at issue related exclusively to the manner in which the Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the United States. Ranbaxy believes that it fully complied with all relevant laws, however the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas, the company said in a statement.

In a separate announcement during trading hours today, 16 October 2014, Ranbaxy said it has notified the Bank of New York Mellon to terminate the Deposit Agreements dated 7 July 1994 (under which the Rule 144A Global Depositary Shares / Regulation S Global Depositary Shares have been issued) and underlying GDR programme.

The Bank of New York Mellon on 15 October 2014 issued the notice of termination of GDR programme to the GDR holders and accordingly the bank will complete the process of termination of GDR programme as per the terms of such notice of termination, the company said.

Ranbaxy Laboratories reported a consolidated net loss of Rs 185.93 crore in Q1 June 2014, lower than net loss of Rs 524.24 crore in Q1 June 2013. Total income declined 8.16% to Rs 2451.70 crore in Q1 June 2014 over Q1 June 2013.

In April 2014, Sun Pharmaceuticals Industries acquired Ranbaxy in $4 billion landmark transaction. As per the deal, shareholders will receive 0.8 share of Sun Pharmaceuticals Industries for each share of Ranbaxy.

Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies.

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