Ranbaxy shares plunge 3% on US recall

Shares of Ranbaxy today slumped over three per cent on the bourses after the company said it has recalled its cholesterol-lowering drug Atorvastatin, a generic version of Pfizer Inc's Lipitor, from the US market.

"The company has made a recall of Atorvastatin from the USA market which will cause temporary disruption to that market of this product," the company said in a statement.

Reacting to the news, shares of the company tanked 4.18 per cent to an intra-day low of Rs 491.25 on the BSE. The company however, recovered some lost ground and settled for the day at Rs 495.95, lower by 3.27 per cent from its previous closing price.

Following the slump in the share price, the market capitalisation of the company shrunk by Rs 410 crore to Rs 20,952 crore, in just a single trading session. The market worth of the company stood at Rs 21,362 crore yesterday.

"The investigation with regard to the same of this issue is expected to be completed within two weeks and thereafter the Company expects to resume supplies," the company release said.

Meanwhile, on the National Stock Exchange as well, the stock witnessed similar movement. It opened at Rs 513.15, then fell to an intra-day low of Rs 490.70. The stock finally ended the day at Rs 495.85, lower by 3.28 per cent from its last close.

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