Ranbaxy shares slide 23% as FDA issues import alert

Stocks

oi-Sunil

By Sunil Fernandes

Published: Monday, September 16, 2013, 10:15 [IST]

Shares in Ranbaxy fell as much 23% in early trade as the Food and Drug Administration in the US issued an import alert for the company's facilities in Mohali.

The stock was last trading at Rs 348, down Rs 104 over its previous closing. On Monday brokerage HSBC in a research note downgraded the stock to underweight.

Ranbaxy is one of the top pharma companies in India, but has been having problems in the last few quarters on the financial front and also otherwise.

Earlier this year, according to an Economic Times report, Ranbaxy in the largest drug safety settlement case of a generic drugmaker in the US, the company agreed to pay $500-million penalty to the US government to settle a criminal and civil lawsuit which leveled charges of falsifying data from its drug facilities and shoddy manufacturing practices against it.

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