Ranbaxy restarts generic Lipitor production for US market - Angel Broking

Ranbaxy Labs announced that it will be able to enter the Atrovastain (Lipitor) market soon, as its product has received a fresh go ahead from the USFDA. The company had initiated a recall from the US market after certain lots were contaminated with tiny glass particles. The recall was limited to the US market and the 10, 20 and 40mg strengths of the drug. The company has received approval to resume manufacturing of its generic product at the Ohm's Labs facility in New Jersey. Ranbaxy had launched generic Lipitor in the US market in December 2011 after the USFDA gave final approval to market its generic version of Lipitor produced at Ohm's Labs.

In April 2012, Ranbaxy commenced shipping the product from the new Mohali facility. The product recall initiated in November 2012 caused Ranbaxy's Lipitor market share to fall from a peak of 45% to less than 5%. However, now after the price erosion of the product post exclusivity, we believe that Lipitor will not make any difference to the overall numbers of the company and the improvement in the core business profitability of the company is crucial for the stock outperformance. So we maintain our Neutral rating on the stock.

Source : Equity Bulls

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