Ranbaxy Lab drops after clarification

Ranbaxy Laboratories declined 2.93% to Rs 404.30 at 12:13 IST on BSE, after the company issued clarification on media reports suggesting that it is likely to announce a tie-up with a multinational company.

Meanwhile, the S&P BSE Sensex was down 111.37 points or 0.52% at 21,153.81

On BSE, so far 3.03 lakh shares were traded in the counter as against average daily volume of 4.40 lakh shares in the past one quarter.

The stock hit a high of Rs 418 and a low of Rs 404.30 so far during the day. The stock had hit a 52-week low of Rs 253.95 on 2 August 2013. The stock had hit a 52-week high of Rs 504.30 on 16 January 2013.

The stock had underperformed the market over the past one month till 16 January 2014, falling 0.36% compared with the Sensex's 2.93% rise. The scrip, however, outperformed the market in past one quarter, rising 8.28% as against Sensex's 3.49% rise.

Ranbaxy Laboratories during market hours today, 17 January 2014 clarified that company does not disclose individual business transactions as a part of its normal course of business. Ranbaxy, as part of its strategy, evaluates alternate viable sourcing of materials from time to time and takes decisions based on the best value that can be derived in the interest of the company, the company said. Media reports had suggested that Ranbaxy Laboratories is likely to announce a tie-up with a multinational company for sourcing active pharmaceutical ingredient (API) for its blood pressure drug -- Diovan.

Shares of Ranbaxy Laboratories had declined 14.72% in six trading sessions from a recent high of Rs 474.10 on 9 January 2014. The fall was accentuated after the company during trading hours on 13 January 2014 said it has received the form 483 with certain observations as a result of the recent United States Food and Drug Administration (USFDA) inspection at its active pharmaceuticals ingredient (API) plant at Toansa, Punjab, India.

Ranbaxy said that the company is assessing the USFDA observations, and will respond to the USFDA in accordance with the agency's procedure to resolve the concerns at the earliest. Ranbaxy said it continues to improve its systems and processes, and remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company. The company added that it stays firmly committed to its philosophy of quality and patients first.

The Toansa factory is the fourth Ranbaxy plant to receive negative observations from the US drug regulator; its plants in Paonta Sahib in Himchal Pradesh, Dewas in Madhya Pradesh and Mohali in Punjab had come under the FDA scanner earlier. Imports from the three plants have been stopped by the US regulator.

Ranbaxy Laboratories reported a consolidated net loss of Rs 454.17 crore in Q3 September 2013 compared with net profit of Rs 754.17 crore in Q3 September 2012. Net sales rose 3.1% to Rs 2750.17 crore in Q3 September 2013 over Q3 September 2012. The company unveils Q4 December 2013 results on 5 February 2014.

Ranbaxy Laboratories, India's largest pharmaceutical company, 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. Ranbaxy is a member of the Daiichi Sankyo Group.

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