Ranbaxy scrip plummets 17 percent as investors panic

February 26th, 2009 - 4:15 pm ICT by IANS  

Mumbai, Feb 26 (IANS) Ranbaxy Laboratories’ stock fell a drastic 17 percent Thursday as investors panicked after the US Food and Drug Administration (FDA) halted review of drug applications from the Indian drug major, alleging falsification of data and test results.
The Ranbaxy scrip, which ended Wednesday’s trade on the Bombay Stock Exchange (BSE) at Rs.207.25, was trading at Rs.173.30, down 16.38 percent, around 1 p.m. Thursday.

Announcing the action, the FDA said Wednesday that it was continuing to investigate the matter to ensure safety and efficacy of marketed drugs associated with Ranbaxy’s Paonta Sahib site in Himachal Pradesh.

Over 4.2 million shares changed hands as investors got jittery over the action and the drug company’s image took a beating.

Last September, the FDA had issued two warning letters and instituted an import alert barring the entry of all finished drug products and active pharmaceutical ingredients from Ranbaxy’s Dewas (Madhya Pradesh), Batamandi (Himachal Pradesh) and Paonta Sahib facilities due to violations of current US Good Manufacturing Practices requirements.

That action barred the commercial importation of 30 different generic drugs into the US and remains in effect.

In a press statement, Ranbaxy Laboratories said it will analyse the letter from the FDA informing it about action against the Paonta Sahib facility, placing it under a policy entitled Application Integrity Policy (AIP), and “respond appropriately in a timely manner”.

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