As per the information available on the USFDA website, Ohm Laboratories Inc, a unit of Ranbaxy Laboratories, which the company acquired last year, is recalling 10,85,095 boxes for being "Superpotent Drug: Out Of Specification".
Had this ban not come through, Ranbaxy would have launched Diovan and Nexium generic from Toansa facility - that is procured API from Toansa unit and formulated in Ohm Laboratories in the US. But now if it has to depend on a third party for API, then product launches can get delayed by 6-12 months.
Arvind Bothra, VP of Religare Enterprises says even with an average multiple of 7 to 8 times sales on the domestic business, the value will be higher than the current market cap.
Ranbaxy‘s Toansa plant supplies 70 percent of US-based Ohm Laboratories‘ Active Pharmaceutical Ingredients (API) requirement. This in turn means the company will soon have to go in for outsourcing, incurring a huge costs.
Toansa is the fourth unit of the company that is banned and added to consent decree. With this, all of the company's India-based plants supplying to US are banned.
Toansa is the fourth unit of the company that will be banned and added to consent decree. With this all of the company's India-based plants supplying to US are banned.
Prabhudas Lilladher's joint MD Dilip Bhat is positive on Infy, Wipro and Tech Mahindra. He feels at the moment market valuations are not cheap and there won't be any runaway rally in the market.
In a statement, Ranbaxy said that its New Jersey-based Ohm Labs has received an Establishment Inspection Report (EIR) from the US drug regulator for its December 2012 inspection.
Drug maker Ranbaxy received a clean chit from the US Food and Drug Administration (USFDA) for its New-Jersey based Ohm Laboratories.
Pathik Gandotra of Dron Capital feels Ranbaxy Labs can also give a very high return, but it is extremely risky, he adds.
Today, the pharma major Ranbaxy has surged 8.2% on US FDA (Food and Drug Administration) approval for Generic Lipitor. The drug will be manufactured by Ohm Laboratories, reports CNBC-TV18.