Ranbaxy suspends shipments; shares fall over 2%
Shares of Ranbaxy Laboratories fell as much as 2.7% after the drug maker said on Tuesday it has suspended shipments of pharmaceutical ingredients produced at its Toansa and Dewas plants.business Updated: Feb 25, 2014 13:25 IST
Shares of Ranbaxy Ltd on Tuesday fell over 2% on the bourses after the company said it has suspended shipments of all pharmaceutical ingredients from its Tonsa and Dewas plants.
"This voluntary decision was taken as a precautionary measure and out of abundant caution to better allow the company to assess and review the processes and controls. The company will resume shipments after reassuring them about the processes and controls at these facilities," the company said in a filing on Tuesday.
Reacting to this development, shares of the company opened on a weak note at Rs 364 and then plunged as much as 2.36% to an early low of Rs 354.85 on BSE.
The stock faced similar trends on the National Stock Exchange as well, where it opened at Rs 362, then plunged 2.70% to an early low of Rs 354.10.
Domestic brokerage firm Angel Broking in its research report said that "since the company has voluntarily withdrawn its production, we believe that the company would have made alternative arrangements for the production of the withdrawn API's (Active Pharmaceutical Ingredients)".
"We remain neutral on the stock," Angel Broking (VP-Research, Pharma) Sarabjit Kour Nangra said.