Ranbaxy shares fall on FDA concerns
Reuters Market Eye - Ranbaxy Laboratories(RANB.NS) shares fall 2 percent, adding to Monday's 5.4 percent slump after the U.S. Food and Drug Administration raised concerns about manufacturing practices at one of its factories.
Macquarie and Jefferies downgrade Ranbaxy, saying the FDA uncertainty could put pressure on valuations in the near-term till further clarity emerges.
Macquarie downgrades the stock to "neutral" from "outperform" and cuts the price target to 450 rupees from 500 rupees, while Jefferies cuts Ranbaxy to "underperform" from "hold" with a price target of 350 rupees.
Ranbaxy said on Monday the FDA has filed "certain observations" about its Toansa pharmaceutical ingredients plant in Punjab.
"The issue also increases the risk of delay in resolution of import alerts and launch of products," Jefferies said in a note to clients.
(Reporting by Indulal PM)
- Tweet this
- Share this
- Digg this
- In India, rice replaces ice in bucket challenge
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Comedian Joan Rivers remains in serious condition at N.Y. hospital
- UPDATE 1-Don't mess with nuclear Russia, Putin says
India's economy grew by a faster-than-expected 5.7 percent in the three months through June, its fastest pace in two-and-a- half years, helped by a rebound in manufacturing and mining sectors, government data showed on Friday. Full Article
Exclusive: Reliance plans $13 billion projects including new refinery. Full Article
In race for bigger margins, drug makers willing to lose the India "advantage". Full Article