Ranbaxy Laboratories shares pull off sensational U-turn post-$500 mn penalty

Ranbaxy Laboratories shares gain 3%,after earlier declining as much as 4.2%.

Written by Reuters | Published:May 14, 2013 4:26 pm

Ranbaxy Laboratories shares gain 3 percent,after earlier declining as much as 4.2 percent,as traders call those falls extensive.

* The Indian generic drugmaker slumped earlier,a day after pleading guilty to U.S. felony charges related to drug safety and agreed to pay $500 million in civil and criminal fines.

* However,analysts note that Ranbaxy Laboratories in December 2011 set aside $500 million to resolve the potential criminal and civil liabilities related to the investigation by the U.S. government into its manufacturing practices and falsifying data.

BSE Sensex

NSE Nifty

Top Gainers/Top Losers

Top Value

Top Quantity

* Analysts say the fine announced on Monday could end the overhang that had been created over the US investigation,and allow Ranbaxy Laboratories to focus on its US sales.

* “People are buying shares as uncertainty of US FDA (Food and Drug Administration) and DOJ (Department of Justice) is out of equation now,which is a big boost,” said Ranjit Kapadia,senior vice president at Centrum Broking.

Video of the day

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results