Ranbaxy shares tumble as Lipitor patent expires

Shares of Ranbaxy Laboratories on Wednesday dropped by nearly 4 per cent amid reports that the pharma major is struggling to get approvals from the US drug regulator to launch generic version of Lipitor.

Defying the broader market, Ranbaxy fell by as much as 3.88 per cent to close at Rs 434.80 on the BSE. During the day, the stock tumbled by 4.94 per cent to touch the day's low of Rs 430 apiece.

At the National Stock Exchange, the stock settled at Rs 439 apiece, down 2.96 per cent from the previous close. During the day, the stock hit a high of Rs 451.20 and a low of Rs 430.

Market analyst said that the counter is reacting to the uncertainty related to the launch of Lipitor.

According to media reports, Ranbaxy is still struggling to get approvals from the US Food and Drugs Administration FDA for cholesterol-lowering pill, Lipitor, that loses patent on Wednesday.

US Patents for the cholesterol lowering drug Lipitor, so far held by Pfizer, expire on Wednesday. Ranbaxy and rival Watson Pharmaceuticals are the only two firms entitled to exclusively sell a copy of Lipitor for next six months once the patents expire.

Despite having six months exclusivity, the company still needed final clearance from the FDA for its copy of the world's best-selling drug, so that it could launch the generic version in the US. However, Watson Pharmaceuticals has announced the launch of the drug in the US market.

The 30-share Sensex ended the trade at at 16,123.46, up 115.12 points or 0.72 per cent from the previous close.