Ranbaxy shares fall on USFDA concerns
Jan 14 2014 , Mumbai
Macquarie and Jefferies downgrade Ranbaxy, saying the FDA uncertainty could put pressure on valuations in the near-term till further clarity emerges.
Macquarie downgrades the stock to "neutral" from "outperform" and cuts the price target to 450 rupees from 500 rupees, while Jefferies cuts Ranbaxy to "underperform" from "hold" with a price target of 350 rupees.
Ranbaxy said on Monday the FDA has filed "certain observations" about its Toansa pharmaceutical ingredients plant in the northern Indian state of Punjab.
"The issue also increases the risk of delay in resolution of import alerts and launch of products," Jefferies said in a note to clients.