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Recalling 73m pills might not affect Ranbaxy's revenues
Published on Fri, Nov 16, 2007 at 09:34   |  Updated at Fri, Nov 16, 2007 at 12:26  |  Source : Moneycontrol.com

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.                     
 

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