The stocks of Sun Pharmaceutical Industries and Ranbaxy Laboratories fell more than 3% on Monday on the back of drug recalls faced by both the drug makers.
The stocks of Sun Pharmaceutical Industries and Ranbaxy Laboratories fell more than 3% on Monday on the back of drug recalls faced by both the drug makers.
The Ranbaxy share fell as much as 3.8% to R356 after the firm recalled its generic cholesterol lowering medicine for a second time in the last 15 months. Ranbaxy, a unit of Tokyo-based Daichii Sankyo, withdrew 64,626 bottles of atorvastatin calcium, a generic version of Lipitor, from the US after a product complaint was received by a pharmacist, the US Food and Drug Administration said on its website. The scrip ended the session down 1.51% or R5.60 at R364.50.
Meawhile, shares of Sun Pharma closed at a one-month low of R596 after the US FDA said the company is recalling the generic version of an anti-diabetes medicine.The stock lost R16.15 or 2.6% on Monday.
The Mumbai-based company’s US subsidiary Caraco Pharmaceutical Laboratories will recall 2,528 bottles of generic Glumetza or metformin HCI ER. The regulator said the recall was initiated on account of the presence of 'foreign tablets’ after a customer found some tablets of the epilepsy drug gabapentin in a bottle of metformin.
Although both the pharma scrips saw selling pressure, analysts feel the news would not have any significant bearing on the earnings. “This was a Class II recall. So there was nothing wrong with the product, only the labeling was wrong. We don’t see any impact on the earnings,” said Alok Dalal, pharma analyst, Motilal Oswal. “The scrips may also have been under pressure as market players are churning their portfolios from defensives to beta stocks,” he added.
Ranbaxy has been facing regulatory concerns in recent past. US FDA has banned four of its plants — Toansa, Dewas, Paonta Sahib and Mohali — for deficiencies in manufacturing practices.
The stocks of Sun Pharmaceutical Industries and Ranbaxy Laboratories fell more than 3% on Monday on the back of drug recalls faced by both the drug makers.
The Ranbaxy share fell as much as 3.8% to R356 after the firm recalled its generic cholesterol lowering medicine for a second time in the last 15 months. Ranbaxy, a unit of Tokyo-based Daichii Sankyo, withdrew 64,626 bottles of atorvastatin calcium, a generic version of Lipitor, from the US after a product complaint was received by a pharmacist, the US Food and Drug Administration said on its website. The scrip ended the session down 1.51% or R5.60 at R364.50.
Meawhile, shares of Sun Pharma closed at a one-month low of R596 after the US FDA said the company is recalling the generic version of an anti-diabetes medicine.The stock lost R16.15 or 2.6% on Monday.
The Mumbai-based company’s US subsidiary Caraco Pharmaceutical Laboratories will recall 2,528 bottles of generic Glumetza or metformin HCI ER. The regulator said the recall was initiated on account of the presence of 'foreign tablets’ after a customer found some tablets of the epilepsy drug gabapentin in a bottle of metformin.
Although both the pharma scrips saw selling pressure, analysts feel the news would not have any significant bearing on the earnings. “This was a Class II recall. So there was nothing wrong with the product, only the labeling was wrong. We don’t see any impact on the earnings,” said Alok Dalal, pharma analyst, Motilal Oswal. “The scrips may also have been under pressure as market players are churning their portfolios from defensives to beta stocks,” he added.
Ranbaxy has been facing regulatory concerns in recent past. US FDA has banned four of its plants — Toansa, Dewas, Paonta Sahib and Mohali — for deficiencies in manufacturing practices.