Recalling 73m pills might not affect Ranbaxy's revenues

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Recalling 73m pills might not affect Ranbaxy's revenues

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.

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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 25/05/12 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.