Ranbaxy Laboratories shares today fell by over 4 per cent in early trade,after US subsidiary of the company agreed to pay USD 500 million,pleading guilty to “felony charges” relating to manufacture and distribution of certain adulterated drugs made at two India units.
After making a weak opening,Ranbaxy Laboratories shares further tanked 4.22 per cent to Rs 421 on the BSE.
At NSE,the Ranbaxy Laboratories shares were down 4.21 per cent at Rs 421.15.
However,later the stock pared early losses in an overall strong stock market and was trading 0.57 per cent higher at Rs 442.05 on the BSE in late morning trade.
“With this settlement,the long lawsuit is now over for the company. Thus,with this development,one of the overhangs on the stock is out,” said Sarabjit Kour Nangra,VP-Research-Pharma,Angel Broking.
Pleading guilty to “felony charges” relating to manufacture and distribution of certain adulterated drugs made at two India units,the US subsidiary of Ranbaxy yesterday agreed to pay USD 500 million the largest settlement by a generic medicine maker till date.
The US Justice Department said in a statement: “In the largest drug safety settlement to date with a generic drug manufacturer,Ranbaxy USA,a subsidiary of Indian generic pharmaceutical manufacturer Ranbaxy Laboratories,pleaded guilty today to felony charges relating to manufacture and distribution of certain adulterated drugs made at two of Ranbaxy’s manufacturing facilities in India.”
“Ranbaxy also agreed to pay a criminal fine and forfeiture totalling USD 150 million and to settle civil claims under the False Claims Act and related State laws for $350 million.”
In the broader market,the BSE benchmark Sensex was trading at 19,812.56,up 120.89 points at 1121 hrs.