Import alert issued by USFDA on Ranbaxy's Mohali plant could not only be negative for the stock but according to the analyst community Ranbaxy could be on its last legs for having a good strong base in the US.
The US Food and Drug Administration (USFDA) issued import alert on Ranbaxy Laboratories's Mohali Unit reports CNBC-TV18’s Ekta Batra.
This could be an extreme negative for Ranbaxy and according to the analyst community Ranbaxy could be on its last legs for having a good strong base in the US.
After the problems at Paonta Sahib and Dewas, the USFDA now has a problem per se with its unit at Mohali.
Mohali being a new plant, manufacturing wasn’t at full scale but most of the new drugs by the company were slated to be actually manufactured there. There is yet more clarity required from the company itself in terms of what will happen to all of their big ticket drugs, which were expected to be launched especially in Q4 CY13.
There was already Form 483, which was issued for Mohali. This means there were certain manufacturing practices which the US FDA had already pointed out and the company had time to comply to the problems US FDA had bought up.
However, since Ranbaxy could not comply to with those issues the 483 has now converted to an import alert.
The stock closed at around Rs 319, down 30 percent from its previous closing.