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Analysts say the company's 26 percent sequential growth in US business was a big positive, and a stock re-rating was on the cards following the improvement visible in its base business.
The US results were a relief after Ranbaxy shares had tumbled 36 percent as of Wednesday's close since the drug maker pleaded guilty to US felony charges related to drug safety and agreed to pay USD 500 million in settlement.
Brokerage firm UBS upgraded Ranbaxy Labs to 'buy' from 'sell'. It said that the valuations had become attractive after the sharp decline in shares on regulatory concerns.
The stock hit a near 4-year low after a news report said the US FDA may have issued a form 483 to its Mohali facility. The company has already pleaded guilty to felony charges related to manufacturing practises at its Dewas and Paonta Sahib plants.
According to a newspaper report Jaslok Hospital in Mumbai has advised its doctors to stop using Ranbaxy's drugs. The report comes after Ranbaxy pleaded guilty in the US to felony charges related to manufacturing at two of its plants, earlier this month.