Recalling 73m pills might not affect Ranbaxy's revenues

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say Ranbaxy Labs BSE | NSE 10/02/12 Are Mutual Funds betting on Ranbaxy Labs?

Q: How might the market take the news (Ranbaxy recalls 73 m pills of Gabapentin in US retail market after discovering impurities) on Ranbaxy this morning?

A: CNBC-TV18's stocks editor, Udayan Mukherjee - Not very well, not too badly either, because materially it may not mean too much for Ranbaxy , the size of the drug and what they recalling might not tend the revenues materially. But as a Ranbaxy investor, you would tend to worry a little bit about how the US FDA might look at all these things; remember the big cloud over Ranbaxy a few quarters back or throughout the last few quarters has been their Paonta Sahib facility, what the US FDA is going to do with it.

And now for a large number of drugs have been pulled back because of impurities, maybe Ranbaxy comes a little bit more under the scanner of the US FDA. I would worry on that front on whether Ranbaxy is increasingly getting into a bit of a grey-list for the US FDA.

So that is the worry rather than the more material pullback or the revenue impact of this pullback.