Ranbaxy gains 6.5% post USFDA clarification on 3 plants
Drug maker Ranbaxy Labs rose 6.5 percent to close at Rs 345.25 after USFDA told CNBC-TV18 that there is no proof of data reliability issues other than at 3 units that are Paonta Sahib, Batamandi & Dewas.
July 03, 2013 / 11:05 IST
Ranbaxy Laboratories shares rebounded in late trade, rising nearly 10 percent intraday after the USFDA told CNBC-TV18 that there was no proof of data reliability issues other than at 3 units that are Paonta Sahib, Batamandi (part of Paonta) and Dewas.
US Food and Drug Administration (USFDA) said, "Company's two manufacturing plants (Paonta Sahib and Dewas) remain under ongoing review, under the consent decree. There is no evidence of major current good manufacturing practices (cGMP) violations except at these two plants in India and Gloversville, a unit in New York, which Ranbaxy shut in 2011."
The stock rallied 6.5 percent to close at Rs 345.25 amid heavy volumes on the Bombay Stock Exchange.Trading volumes increased 168 percent to 10,32,635 equity shares as compared to its five-day average of 3,84,457 shares.The US drug regulator further said an increase in foreign inspection was due to higher FDA registered units."Number of foreign inspections will continue to increase and we will increase our activities in India," it added."We are exploring opportunity to open additional office in Hyderabad and we will add 7 additional drugs investigators in India."Also Read - Glenmark gets final US approval for anti-migraine drug Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
