Ranbaxy shares bounce back; surge over 6%
Mumbai: Recovering from yesterday's sharp losses, shares of Ranbaxy Laboratories on Tuesday gained over 6 percent on value buying, a day after its Mohali plant in Punjab was slapped with an import alert barring drugs produced there from being imported into the US.
After opening the trade on a positive note, shares of the drug major further rallied 6.28 percent to Rs 338.9 on the BSE.
At the NSE, the stock jumped 6.12 percent to Rs 338.
In the previous session, shares of Ranbaxy lost over 30 percent, eroding Rs 5,855 crore from its market value.
This is the third Ranbaxy plant, after units at Dewas (Madhya Pradesh) and Paonta Sahib (Himachal Pradesh), had earlier received US import alert.
In a filing with the BSE today, Ranbaxy said during the late hours of September 16, 2013, the company received communication from the USFDA that the regulator has imposed an import alert on its Mohali facility.
"The USFDA also advised that the Mohali facility will be subject to certain terms of the consent decree signed in January 2012," it noted.
The company further said it will review the details and will continue to fully cooperate with the USFDA and take all necessary steps to resolve the concerns at the earliest.
In May, Ranbaxy pleaded guilty to "felony charges" related to the manufacture and distribution of certain 'adulterated' drugs made at two units in India and agreed to pay USD 500 million to US authorities as a penalty.