Glaxo Unit Drops on Probe Order Amid India Food Scare

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GlaxoSmithKline Consumer Healthcare Ltd. slid as much as 9.2 percent in Mumbai, the most since 2013, after India ordered tests on some of its products in the wake of results showing lead in Nestle India Ltd.’s Maggi noodles.

The plunge followed a Food Safety and Standards Authority of India request for tests on items from seven companies, including GlaxoSmithKline, Nestle and ITC Ltd. GlaxoSmithKline Consumer Healthcare closed down 4.3 percent at 6,111.90 rupees on Monday, worse than the 0.9 percent drop in the S&P BSE Sensex. Nestle India slid 7.4 percent. ITC was little changed.

The federal food safety agency asked Indian states to test a variety of flavors from GlaxoSmithKline’s Foodles range and report by June 19. Competitor Nestle faces its biggest crisis in India after authorities said tests showed lead levels exceeding permissible levels in some Maggi noodle products. Nestle says the products are safe to consume.

“We will provide all support to the authorities and ensure that we remain in complete compliance with the law,” GlaxoSmithKline said in an e-mail.

The regulator also requested tests in the June 8 order on items from Ruchi International, CG Foods India Pvt., AA Nutrition Ltd. and Indo Nissin Foods Ltd.

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