PIL against Ranbaxy wants directors tried for bad drugs

A public interest litigation (PIL) seeking CBI prosecution against the directors of pharmaceutical major Ranbaxy was filed on Wednesday in the Supreme Court, and sought a stoppage of medicine manufacture by the company on the ground that it had supplied adulterated drugs. HT reports.

A public interest litigation (PIL) seeking CBI prosecution against the directors of pharmaceutical major Ranbaxy was filed on Wednesday in the Supreme Court, and sought a stoppage of medicine manufacture by the company on the ground that it had supplied adulterated drugs.

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Advocate ML Sharma moved the SC accusing the Delhi-based firm, now a part of Japan's Daiichi Sankyo group of such drugs leading to "the death of several unknown patients" in India as well as other countries.

Ranbaxy declined to comment on the issue. The PIL drew support from a recent US court decision under which Ranbaxy agreed to pay $500 million (Rs 2,750 crore) as penalty for selling adulterated medicines and concealing facts to US authorities.

Troubled Ranbaxy's stock closed up 1.3% on the Bombay Stock Exchange on Wednesday. Analysts said one should invest in the stock only from a long-term perspective.

"A 'Sell' on Ranbaxy is recommended with a target price of Rs 365 as this company has destroyed wealth for investors," said Gaurang Shah, assistant vice-president, Geojit BNP Paribas Financial Services.

Ranbaxy is now facing global scrutiny. In a relief to the company, the South African drugs regulator said the company's generic drugs distributed in South Africa were safe.