The Toansa and Dewas plants are currently banned from shipping products to United States following quality concerns, so the suspension will hit supplies to other markets including Europe and India, two people with knowledge of the matter said.

The sources declined to be identified due to the sensitivity of the issue, while a statement from Ranbaxy did not give details about the impact of the suspension.

Shares of Ranbaxy fell as much as 2.7 percent in the morning trade following the news, while the Mumbai market was up 0.5 percent.

Last month, US Food and Drug Administration (FDA) prohibited Ranbaxy from shipping to its biggest market any pharmaceutical ingredients made at its facility in Toansa in Punjab.

The sanction was the latest in a series of regulatory rebukes for India's largest drugmaker by revenue since Japan's Daiichi Sankyo Co Ltd took control of the company in 2008.

The Toansa ban, which followed similar action on two plants in 2008 including Dewas and another in September 2013, means Ranbaxy can no longer export to US from India.

Ranbaxy said in a statement on Tuesday it was "currently examining processes and controls" at all its active pharmaceutical ingredients (API) manufacturing units.

"This voluntary decision was taken as a precautionary measure and out of abundant caution to better allow the company to assess and review the processes and controls," it said.

Ranbaxy also said that it has set up a committee to provide oversight on manufacturing and quality operations, systems, organisation and integrity.

Ranbaxy shares down over two percent

Shares of Ranbaxy Ltd on Tuesday fell over two percent on the bourses after the company said it has suspended shipments of all pharmaceutical ingredients from its Tonsa and Dewas plants.
 
"This voluntary decision was taken as a precautionary measure and out of abundant caution to better allow the company to assess and review the processes and controls. The company will resume shipments after reassuring them about the processes and controls at these facilities," the company said in a filing.
 
Reacting to this development, shares of the company opened on a weak note at Rs 364 and then plunged as much as 2.36 percent to an early low of Rs 354.85 on BSE. The stock faced similar trends on the National Stock Exchange as well, where it opened at Rs 362 then plunged 2.70 percent to an early low of Rs 354.10.
     
Domestic brokerage firm Angel Broking in its research report said, “Since the company has voluntarily withdrawn its production, we believe that the company would have made alternative arrangements for the production of the withdrawn API's (Active Pharmaceutical Ingredients).”
     
"We remain neutral on the stock," Angel Broking (VP-Research, Pharma) Sarabjit Kour Nangra said.

(Agencies)

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