MUMBAI: The US court verdict that Ranbaxy Industries, India’s largest drug company, cannot launch a copycat version of Pfizer Inc’s $12 billion-a-year cholesterol drug Lipitor, pulled down its stock by 5.87 per cent on the Bombay Stock Exchange on Monday.
The scrip closed Rs 22.90 lower at Rs 367.35 in a bullish market. The stock was down nearly 9 per cent in intra-day trade but recovered partially. ‘‘The market had never really factored in potential earnings from a version of Lipitor. I don’t expect much drop in valuation of Ranbaxy,’’ said an analyst with local brokerage.
The ruling comes as Ranbaxy is already fighting sharp price erosion in the crucial US market amid intense competition, a slowdown in new product launches and higher R&D and litigation costs.
A US federal judge on Friday upheld the validity of two of Pfizer’s US patents on the cholesterol drug, blocking a generic version that Ranbaxy planned to introduce. Ranbaxy has said it will appeal against the verdict.
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