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Rediff.com  » Business » Ranbaxy Lab dips nearly 7% on bourses

Ranbaxy Lab dips nearly 7% on bourses

June 24, 2013 17:18 IST

RanbaxyShares of Ranbaxy Laboratories on Monday dipped by nearly 7 per cent on reports that the company's manufacturing facility at Mohali has come under the US Food and Drug Administration's scanner.

Shares of the drug firm in intra-day trade lost 7.56 per cent to Rs 323, its 52-week low on the BSE.

The stock finally ended 6.85 per cent lower at Rs 325.50.

On the NSE, the stock tanked 6.99 per cent to close at Rs 324.80.

"The stock has been under pressure due to charges levied by USFDA. The reports which say that even other plant is being looked by USFDA have brought more selling pressure on the stock," said Milan Bavishi, Head Research, Inventure Growth and Securities.

As per the media report, the US Food and Drug Administration is learnt to have issued a Form 483 to the company's manufacturing facility at Mohali a few months ago after finding deviations from norms during an inspection of the plant.

A Form 483 is issued by the FDA at the conclusion of an inspection to notify the company of objectionable conditions that might be in violation of the US Food, Drug and Cosmetic Act and related laws.

However, it does not prevent a company from making regulatory filings from that unit, the report said.

In the stock market, the BSE benchmark Sensex also saw selling pressure and settled the day with a loss of 233.35 points at 18,540.89.

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