Ranbaxy Labs gets another bitter pill

Ranbaxy Labs cup of woes continues to overflow. The ongoing trouble with US FDA apart, there is now another ruling from the US Court, which disallowed the company’s plea to block its competitors from launching the generic versions of Nexium and Valcyte in USA. Ranbaxy was the first genric filer of this drugs and it was expected to earn revenue of more than $350 million during the six-month exclusivity period. With that now gone, the impact on topline is sure to be felt. This now means that Dr Reddy’s and Endo International will now be able to launch their generic versions in the US market soon.

The news came in yesterday during market hours but surprisingly; the stock price did not react and continued to remain the green. Probably the market understood the true impact only today and the stock price has slumped 1.5% at Rs.614 levels, closer to the days low point of Rs.611.