The shares of Indian pharmaceutical major, Ranbaxy fell about 7 per cent following the filing of a consent decree in a US court, which required the company to make fundamental changes to its plants in India and in the US.
The US Justice Department filed the consent decree in court yesterday requiring the Indian firm to comply with US manufacturing standards and ensure integrity of data in its plants in India as well as the US.
The consent decree was signed between the US Food and Drug Administration (FDA) and Ranbaxy last month. The filing extends the ban on sale of drugs from the Indian company’s plants in the US until it makes changes to its facilities in both the countries.
Following of the news of the consent decree, the shares of the company opened weaker on the Bombay Stock Exchange (BSE) and fell 7 per cent to the level of Rs 442.20. The shares of the company also fell on the National Stock Exchange (NSE) to a low of Rs 442.25, down 6.79 per cent.
The shares recovered from the fall and increased to Rs 450.90, down 5.11 per cent on the BSE, and at Rs 450.30, down 5.10 per cent on the NSE this morning at the time of reporting.
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell
- Huge scope for improving Indian shale gas estimates: ONGC
- HPCL Visakha refinery suffers major fire due to short circuit