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.
* 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.