Advertisement

HindustanTimes Thu,10 Jul 2014

Ranbaxy, India’s face of generic medicines, heads towards ICU

HT Correspondent, Hindustan Times  New Delhi, January 25, 2014
First Published: 11:46 IST(25/1/2014) | Last Updated: 11:53 IST(25/1/2014)

India’s iconic pharmaceutical company, Ranbaxy Laboratories, is badly in need of some good medicine itself.

Advertisement


US drug regulator USFDA on Friday blacklisted Ranbaxy Laboratories’ Punjab-based Toansa plant—the generic drug makers’ fourth factory to face such an import ban—dealing a body blow to the company’s reputation and bringing its share prices crashing by nearly 20% on Friday.http://www.hindustantimes.com/Images/Popup/2014/1/htliveranbaxy_compressed.jpg

Japanese drug maker Daiichi Sankyo had bought the company for an eye-popping $4.6 billion (about Rs. 20,000 crore at the time) in 2008 from its former promoters, Malvinder Mohan Singh and family. The latest ban could not have come at worse time for the one-time poster-boy of India’s pharmaceutical industry that is nursing a welter of festering wounds from run-ins with regulators to employee exits and penalties for felony. (See graphic)

The company will now have to negotiate prolonged scrutiny before it can introduce new products in key markets.

Analysts warned of a drop in earnings by upto 40% over the next one year as exports from India are effectively ruled out.

It could also hit the company’s plans to exploit “patent cliff” opportunities, ruling out a shot at a multi-billion dollar opening of drugs whose patents expire soon.
Ranbaxy has been found wanting compared to its peers, facing pointed posers on production and hygiene standards. The USFDA on Thursday prohibited it from making and selling active pharmaceutical ingredients (API) from its facility in Toansa.

Violations included staff re-testing raw materials and drugs after they “failed analytical testing and specifications in order to produce acceptable findings.”

The plant was supplying upto 75% of its demand for APIs—the core component that goes into a medicine’s production—to its other units including the one based in Ohm in the US. “We would like to apologise to all stakeholders for the inconvenience caused by the suspension,” said Arun Sawhney, CEO and MD, Ranbaxy.

comment Note: By posting your comments here you agree to the terms and conditions of www.hindustantimes.com
blog comments powered by Disqus

Advertisement
more from Chandigarh

Union Budget 2014: Proposals for the region

A Rs 500-crore package for rebuilding the lives of Kashmiri migrants was among the slew of measures announced in this year's Union budget for the region, including Jammu and Kashmir. Presenting the Budget for 2014-15, union finance minister Arun Jaitley said that a fund of Rs 500 crore will be earmarked for providing support to Kashmiri migrants for "rebuilding their lives". Budget 2014 highlights: Jaitley gives tax relief

Advertisement

 
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved