Ranbaxy stock down again on US FDA worries

Stocks

oi-Sunil

By Sunil Fernandes

Published: Tuesday, January 14, 2014, 9:49 [IST]

After slumping more than 5 per cent on Monday the stock of Ranbaxy was down once again in trade today, after investors worried over US FDA warnings for one of its plants.

The stock was trading lower by 1.57 per cent on the National Stock Exchange.

"On Saturday, January 11, 2014, Ranbaxy received the Form 483 with certain observations, as a result of the recent US FDA inspection at its API plant at Toansa, Punjab. The company is assessing the observations, and will respond in accordance with the agency's procedure to resolve the concerns at the earliest," Ranbaxy said in a clarification to stock exchanges.

The Toansa plant in Punjab is crucial for Ranbaxy as it supplies 70-75 per cent of the pharmaceutical ingredients required by Ranbaxy. The stock fell over 9 per cent on Monday on the Bombay Stock Exchange to close at its lowest level in nearly a month.

With inputs from Dion Global Solutions Ltd