Ranbaxy shares slide after US blocks drug imports
Shares of top Indian generics company Ranbaxy slid today after the US regulator blocked the import of more than 30 of the company's drugs, saying they failed to meet manufacturing standards.Updated: Sep 17, 2008 12:56 IST
Shares of top Indian generics company Ranbaxy slid on Wednesday after the US regulator blocked the import of more than 30 of the company's drugs, saying they failed to meet manufacturing standards.
Ranbaxy, which is being bought by Japan's Daiichi Sankyo, said it was "disappointed" by the US Food and Drug Administration's move.
"We are very disappointed in the action (the) FDA has taken. The company has responded to each concern the FDA raised and we thought progress was (being) made," Ranbaxy said in a statement to the Mumbai stock exchange.
News of the FDA decision sent shares of Ranbaxy, India's largest generic drugs company by sales, down 10.54 percent or 42.8 rupees in the morning, dealers said.
The FDA said Ranbaxy one of the main suppliers of generic drugs in the US market displayed "deficiencies in its drug manufacturing process."
The New Delhi-based company said it would review warning letters issued by the FDA.
"Once we have the opportunity to review the issues, Ranbaxy looks forward to continuing to co-operate with the FDA to resolve the remaining issues," the company statement said.