The import issued by US authorities on Ranbaxy’s Mohali plant is likely to have a sentimental impact rather than a financial one because the pharma major is not selling any product from this plant says Sriram Rathi, Anand Rathi.
However, if the companies’ exclusivities which are still in the pipeline like Diovan and Valcyte are from this plant then there can be significant financial impact. Below is the edited transcript of Sriram Rathi’s interview with CNBC-TV18 Q: What could be the immediate impact be of this news on the Ranbaxy stock this morning? A: The import alert which has come is going to have more of sentimental impact rather than the financial impact. The company is not selling any product as of now from this plant to US market. But at the same time, if few exclusivities that are still in the pipeline like Diovan and Valcyte are from this plant then there can be significant impact on the financial side as well. But otherwise it is going to be more of a sentimental impact. Q: Where do you see the stock heading? A: The stock may open in the red today because the company is already received import alert on two of the plant and this is the third one. It is now left with only one plant Ohm Laboratories which is supplying to the US market. The company will not be able to build future pipeline from this plant, which the company was doing till now.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!
