Ranbaxy Laboratories slumped 9.49% to Rs 481 at 11:15 IST on BSE on reports the allegations raised by the US government against the firm has the potential to derail plans of the company's promoters to sell their 34.8% stake to Daiichi Sankyo.
The stock hit a high of Rs 522 and a low of Rs 475.50 so far during the day. The stock had a 52-week high of Rs 613.70 on 19 June 2008 and a 52-week low of Rs 299.90 on 22 January 2008.
India’s biggest drugmaker by sales has an equity capital of Rs 186.62 crore. Face value per share is Rs 5.
The current price of Rs 481 discounts its Q4 March 2008 annualised EPS of Rs 11.09, by a PE multiple of 43.37.
The US government has filed a motion, seeking certain documents from Ranbaxy over doubts of it indulging in alleged malpractices like concealing and forging crucial data to get marketing approval for its products in the US.
The suit filed against Ranbaxy and its US-based consultant, Parexel Consulting, alleges that the company has concealed and forged crucial data to get a favourable judgement on an ongoing investigation by the United States Food and Drugs Administration (USFDA) into the sale of sub-standard drugs in that country.
According to reports, Ranbaxy has denied all allegations made against the company and will file its response in the court on 14 July 2008.
The suit, filed with the District Court of Maryland, has directed Ranbaxy and Parexel to submit all relevant documents for verification. If proved, the allegations could have a serious impact on Ranbaxy's US operations, which contributed 23% to the company's total revenues of $1.6 billion in the financial year ended December 2007. Legal damages will also follow.
Reports suggest that the allegations by US government can affect transaction between Daiichi Sankyo and Ranbaxy. As per reports, Daiichi was in the process of assessing the legal liabilities involved in the acquisition of Ranbaxy.
On June 11, Japanese drug maker Daiichi Sankyo had announced its plans to acquire a majority stake in Ranbaxy through an all-cash deal valued at $4.6 billion (Rs 19,780 crore). The company recently announced an open offer to acquire Ranbaxy shares.
Ranbaxy’s net profit declined 10.3% to Rs 103.42 crore on 0.1% fall in net sales to Rs 987.29 crore in Q1 March 2008 over Q1 March 2007.
Ranbaxy Laboratories is India's largest drug maker by sales.
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