Troubled drug maker says it voluntarily halted shipments to review processes, controls
In a notice filed to the exchanges, the drug maker said it is currently examining processes and controls at all bulk drug manufacturing units of the company.
“This action has led to temporarily putting on hold shipments from the company’s API (active pharmaceutical ingredient) facilities of the Toansa 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 said in the notice.
On Jan 24, the US Food and Drug Administration prohibited the company from using active pharmaceutical ingredients made at its Toansa unit for manufacturing products that are sold in the US. Effectively, all facilities of Ranbaxy, except the Ohm Labs in the US were prohibited from the US. Even for Ohm Labs, the company can currently supply products only with bulk drugs not sourced from any of its Indian plants.
Earlier this month, the Drug Controller General of India had said the Central Drugs Standard Control Organization was also evaluating Ranbaxy’s Toansa plant in Punjab.
An analyst from a domestic brokerage said that Ranbaxy’s stock is not likely to show much movement since it is a voluntary action from the company. However, the analyst added, the action being voluntary is a positive from an investor’s point of view.
The Daiichi Sankyo-owned pharmaceutical company also said it has formed a panel this month to “help and assure good governance to all Ranbaxy stakeholders.”
Shares of Ranbaxy touched an intra-day low of Rs 354.85 after opening at Rs 364. However, making a smart comeback, shares of the company reached an intra-day high of Rs 373.40. It gained one per cent to end at Rs 367.05 on the BSE.
Domestic brokerage firm Angel Broking said that since the company has voluntarily withdrawn its production, “we believe that the company would have made alternative arrangements for the production of the withdrawn APIs (Active Pharmaceutical Ingredients)”. -Cogencis