Ranbaxy gains on report of key ingredient sourcing

Reuters Market Eye - Shares in Ranbaxy Laboratories Ltd up as much as 2.2 percent after Business Standard reports the company has partnered with an unnamed multinational drug maker to procure API, or active pharmaceutical ingredient, for a generic version of an anti-hypertension drug, citing unnamed sources.

Ranbaxy declines to comment on the media report

HSBC notes that sourcing API could potentially mean reduced profits for Ranbaxy, but would help increase confidence on cash flow generation.

Ranbaxy shares fell sharply on Monday and Tuesday after the company said U.S. FDA had raised concerns about manufacturing practices at one of its factories.

The stock was flat in trade at 2.58 p.m.

 

(Reporting by Indulal PM)