Ranbaxy recalls generic Lipitor in US, scrip hit
“The investigation with regard to....this issue (reasons of recall) is expected to be completed within two weeks and thereafter the company expects to resume supplies,” a company spokesperson said. This disruption in supplies for a minimum of two weeks may take a toll on the company’s Lipitor market share of over 45% in the US, which it has gained painstakingly amid fierce competition.
The news saw the company's share price nosedive on the BSE, closing 3.27% down at Rs 496.
While most analysts stressed the need to wait and watch till the reasons for the recall are clear, some fear that if supplies are not resumed swiftly after the specified two weeks, it may adversely impact or delay the ongoing consultation on consent decree that the company has been put under.
A consent decree is a legal agreement between a pharma firm and the US government that contains a series of corrective steps the erring company must implement to avoid litigation by the FDA and to continue to remain in business in the US market. A consent decree is also a court order in itself, which binds the firm
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