Ranbaxy Lab recovers on bargain hunting

Ranbaxy Laboratories rose 2.01% to Rs 316.50 at 12:29 IST on BSE, with the stock recovering on bargain hunting after recent steep slide triggered by the US drug regulator banning the company's Toansa facility in India from importing drugs to the US.

Meanwhile, the S&P BSE Sensex was down 50.52 points or 0.24% at 20,656.93.

On BSE, so far 5.99 lakh shares were traded in the counter as against average daily volume of 5.33 lakh shares in the past one quarter.

The stock hit a high of Rs 319.90 and a low of Rs 309 so far during the day. The stock had hit a 52-week high of Rs 490.15 on 6 January 2014. The stock had 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 27 January 2014, sliding 33.09% compared with the Sensex's 2.29% fall. The scrip had also underperformed the market in past one quarter, declining 21.49% as against Sensex's 0.12% rise.

The large-cap company has equity capital of Rs 211.89 crore. Face value per share is Rs 5.

Shares of Ranbaxy Laboratories had declined 25.62% in two trading sessions to settle at Rs 310.25 on Monday, 27 January 2014 from a recent high of Rs 417.15 on 23 January 2014, after the company before market hours on 24 January 2014 announced that the US Food and Drug Administration (USFDA) notified the company that it is prohibited from manufacturing and distributing active pharmaceutical ingredients (APIs) from its facility in Toansa, India, for FDA-regulated drug products.

The Toansa facility is now subject to certain terms of a consent decree of permanent injunction entered against Ranbaxy in January 2012, Ranbaxy said in a statement.

Subsequent to the Form 483 issued in early January 2014, Ranbaxy voluntarily and proactively suspended shipments of API from this facility to the US market when it received the inspection findings. Ranbaxy said that the management is disappointed with the recent FDA action and would like to apologize to all its stakeholders in for the inconvenience caused by the suspension of shipment.

Ranbaxy further said that the company is committed to highest standard of patient safety and quality, and shall constantly endeavour to strengthen its systems and processes. Ranbaxy will cooperate with the FDA and shall comply with the Consent Decree in both the letter and spirit, it said.

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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