Equity Alert: Ranbaxy down 7% on US FDA warning; support 360 rupees
MUMBAI--10:45AM--Ranbaxy Laboratories' shares fell 7% to 375
rupees as US
Food and Drug Administration proposed to ban import of 30 drugs from
its Paonta
Sahib and Dewas units, citing serious manufacturing deficiencies,
dealers said.
"The stock has intraday support at 360 rupees," said a technical
analyst.
The US FDA has sent two warning letters and an import alert to the
company.
Terming the move as "substantially negative" for Ranbaxy,
Macquarie
Securities, in a note to clients, said it was surprised by US FDA's
action as
the ban is based on perceived quality control issues even as it has
not found
any evidence yet.
"These two facilities contribute 20% each of US exports. US
exports is
approximately 25% of overall sales, so 10% of overall sales gone," the
note
said.
Ranbaxy today said it was "disappointed" with US FDA's action, but
is
"pleased that FDA's testing and review led the agency to conclude that
there
is no reason to question the safety or effectiveness of Ranbaxy's
drugs."
So far on NSE, 969,727 Ranbaxy shares have been traded. Its
September
futures contract was trading at a 26-rupee discount to spot, with 0.1%
fall
in open interest.
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