Ranbaxy Laboratories slumped 8.15% to Rs 372.30 at 10:09 IST on BSE on reports the US government has banned more than 30 generic drugs made by the company citing poor quality in two of its Indian factories.
The stock hit a high of Rs 390 and a low of Rs 363.10 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 largest drug maker by sales has an equity capital of Rs 187.03 crore. Face value per share is Rs 5.
The current price of Rs 372.30 discounts its Q1 June 2008 annualised EPS of Rs 2.54, by a PE multiple of 146.57.
According to reports, the US Food and Drug Administration (US FDA) would block more than 30 generic drugs from entering the United States following ongoing procedural violations in manufacturing at Ranbaxy's Dewas and Paonta Sahib plants in India.
It also will not approve any new drugs made at the plants until the problems are resolved. The violations pertained to the manufacturing process and not the drugs themselves, the reports added, urging patients not to stop taking any medications and to talk to their doctors. A sampling of products made at the two plants showed no concerns, the reports added.
India has become one of the world's leading suppliers of generic drugs, and concern about Ranbaxy has been growing since FDA inspectors uncovered quality problems at one of its factories in 2006.
Ranbaxy Laboratories’ net profit declined 91.8% to Rs 23.73 crore on a 19.9% increase in net sales to Rs 1216.92 crore in Q2 June 2008 over Q2 June 2007.
Ranbaxy Laboratories manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates.
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