Ranbaxy Labs slides on buzz of Rs 240 crore fine in US

Ranbaxy Laboratories fell 1.42% to Rs 632 at 10:39 IST on BSE on reports the company may have to pay Rs 242 crore fine imposed by the State of Texas.

Meanwhile, the BSE Sensex was up 90.76 points, or 0.34%, to 26,450.87.

On BSE, so far 85,000 shares were traded in the counter, compared with an average volume of 1.40 lakh shares in the past one quarter.

The stock hit a high of Rs 635.90 and a low of Rs 626.60 so far during the day. The stock hit a 52-week high of Rs 648.55 on 21 August 2014. The stock hit a 52-week low of Rs 297.25 on 16 September 2013.

The stock had outperformed the market over the past one month till 21 August 2014, rising 14.14% compared with 2.51% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 46.76% as against Sensex's 8.49% rise.

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

According to reports, Ranbaxy Laboratories has been in negotiation with the US state over settlement of this issue for quite some time now. While final details are awaited, reports said the fine could be broadly split into two components.

One of this, about 38%, could relate to some additional dues that the state may have claimed on account of Ranbaxy's previous slippages from the US-prescribed manufacturing practices, which led to its coughing up $500 million as fine in the US in May last year.

However, a second component of about 61% of the settlement sum could be flowing from an assessment by the US state, which shows that the drug maker has overcharged the state of Texas on one or more drugs under its public-funded Medicaid programme, reports added.

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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