Ranbaxy jumps on buzz it hunts for FDA-approved plants

Ranbaxy Laboratories rose 3.09% to Rs 371.65 at 14:07 IST on BSE on a media report that the company is looking to buy a manufacturing facility in India to secure its future launches and shift some of its blockbuster drug filings.

Meanwhile, the BSE Sensex was down 131.63 points, or 0.66%, to 19,784.32.

On BSE, 5.02 lakh shares were traded in the counter compared with average volume of 7.88 lakh shares in the past one quarter.

The stock hit a high of Rs 372.30 and a low of Rs 361 so far during the day. The stock hit a 52-week high of Rs 559.80 on 8 November 2012. The stock hit a 52-week low of Rs 253.95 on 2 August 2013.

The stock had underperformed the market over the past one month till 4 October 2013, sliding 18.85% compared with the Sensex's 7.26% rise. The scrip had, however, outperformed the market in past one quarter, rising 7.37% as against Sensex's 2.60% rise.

The large-cap company has an equity capital of Rs 211.56 crore. Face value per share is Rs 5.

According to the report, Ranbaxy Laboratories is looking to buy a manufacturing facility in India to secure its future launches and shift some of its blockbuster drug filings in an attempt to reduce risks arising out of issues with its Mohali plant in Punjab.

Since all of Ranbaxy's plants in India are inoperative, the company is considering the option of acquiring a US Food & Drug Administration (US FDA)-approved plant in India, the report said.

The US FDA issued an import alert against company's Mohali plant in Punjab on 13 September 2013.

Ranbaxy's plant in Mohali manufactures oral solids for export to the US, the European Union and other geographies.

In May 2013, the company agreed to pay $500 million penalty to the US government to settle criminal and civil charges related to drug safety.

The report estimated that Ranbaxy has close to 30 generic drug filings in facilities like Ohms in the US and Mohali, with Mohali having the maximum filings.

Ranbaxy Laboratories reported consolidated net loss of Rs 524.24 crore in Q2 June 2013, lower than net loss of Rs 585.72 crore in Q2 June 2012. Net sales declined 17.8% to Rs 2633.20 crore in Q2 June 2013 over Q2 June 2012.

Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of generic medicines. Ranbaxy serves its customers in over 150 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 43 countries and manufacturing operations in 8 countries. Ranbaxy is a member of the Daiichi Sankyo Group.

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