Share prices of Ranbaxy tumbled nearly 7 per cent in the morning trade after a consent decree was filed in a US court that requires the drug firm to make fundamental changes at its plants in the US and India.
The US Justice Department filed a “ground-breaking” consent decree in court yesterday, mandating Indian drug-maker Ranbaxy to adhere to US manufacturing standards and ensure integrity of data at its plants in the US and India.
Reacting to the development, the stock of the company opened on a weak note on the BSE and then plunged nearly 7 per cent to touch a early low of Rs 442.20.
Similar movement was seen on the National Stock Exchange where, the scrip tanked 6.79 per cent to a low of Rs 442.25.
The stock however, recovered some ground and was trading at Rs 450.90, down 5.11 per cent on the BSE, and at Rs 450.30, lower by 5.10 per cent on the NSE at 1042 hours.
“The stock reacted to the consent decree that was filed in the US. The judgment is negative and the slump in the counter is a kneejerk reaction to the development,” the CNI Research Head, Mr Kishor Ostwal, said.