Ranbaxy slumps deep into red

Ranbaxy Labs is currently the top loser on the BSE, down over 15% at Rs.353.30, with volumes spiking up almost 3 times. The stock went as low as Rs.335 or almost 20% in the early morning trades.

The stock is down on news coming in that US FDA has banned imports to USA from Ranbaxy due to manufacturing violations. The FDA said Ranbaxy is prohibited from making and distributing pharmaceutical ingredients from its facility in Toansa in Punjab, to prevent substandard quality products from reaching US consumers.

The US FDA has stated that it has identified significant violations of sound manufacturing practices.  The staff at the Toansa facility were found to have re-tested raw materials and other ingredients after the items failed analytical testing .