Tuesday, September 23, 2008

India's Ranbaxy hit by reports of Canada drug review

From AFP:
Shares of Indian generics giant Ranbaxy hit an 18-month low Tuesday on reports Canada was looking into the safety of the firm's drugs as well as on fears about its revenue outlook, analysts said.

Ranbaxy shares have been under pressure since the US Food and Drug Administration blocked imports of over 30 of the New Delhi-based company's drugs last week, saying they failed to meet manufacturing standards.

On Tuesday, India's business daily Mint quoted the Canadian health ministry as saying a "regulatory letter" was sent to Ranbaxy Pharmaceuticals Canada requesting an action plan and a response to the FDA's move.

The company, which is being bought by Japan's Daiichi Sankyo in a deal valued at up to 4.6 billion dollars, closed down 11.05 percent or 38.35 rupees at 308.85 rupees, its lowest level since March 2007.

"We're not responding to any media reports," said a spokesman for Ranbaxy when asked about the Canadian letter. ...more

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