The Hindu Business Line : Ranbaxy faces heat from more countries

New Delhi, Sept. 23 Shares of pharmaceutical major Ranbaxy Laboratories hit an 18-month low on Tuesday as health and drug authorities of countries such as Canada and Germany have now begun to put the company’s products under scanner.

Ranbaxy shares have been under pressure since the US Food and Drug Administration blocked imports of over 30 drugs on the grounds that the plants from where the medicines were being manufactured did not meet manufacturing standards. Ranbaxy’s share price dived 11 per cent on Tuesday to close at Rs 308.85 on the BSE.

While Canadian authorities have said that they were looking into the safety of the firm’s drugs and have sent a letter to Ranbaxy seeking clarity with regard to the manufacturing units, Germany’s drug regulator has also put the company under scrutiny. Ranbaxy did not comment on the developments. Canada and the US together account for more than 25 per cent of Ranbaxy’s revenues. The company had earned $120 million from its North American operations during the quarter ended June 30, 2008.

Ranbaxy is also under pressure from the US Congress Committee on Energy and Commerce, which has expanded the probe on the Indian drug maker to include medicines that were supplied by the company to developing countries under US government-funded programmes.

This is in addition to the probe being conducted by the US Food and Drug Administration. Ranbaxy said that it was confident that all its pharmaceutical products were safe and effective, including the HIV/AIDs drugs it supplies to Africa through various aid programmes. The company said it is committed to working with the Congressional Committee and the FDA to put these matters to rest.

Related Stories:
Ranbaxy hires Giuliani as advisor on USFDA move
US blocks 30 Ranbaxy drugs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page