Ranbaxy Q2 net dips 48%, CEO Sobti to step down
Pharmaceutical major Ranbaxy Laboratories announced a change of guard at its helm with CEO and Managing Director Atul Sobti stepping down to pass the baton to Arun Sawhney, his colleague and president of global pharmaceutical business at Ranbaxy. HT reports.business Updated: Aug 12, 2010 23:37 IST
Pharmaceutical major Ranbaxy Laboratories announced a change of guard at its helm with CEO and Managing Director Atul Sobti stepping down to pass the baton to Arun Sawhney, his colleague and president of global pharmaceutical business at Ranbaxy. Sawhney will take charge from August 20. The announcement came as pharmaceutical firm announced a 48 per cent fall in net profit for the April-June quarter. The company's second quarter profit stood at $72 million (Rs 332 crore), as against $139 million (Rs 693 crore) in the year-ago period.
"We are pleased to appoint Sawhney as the managing director, further advancing the company with the decades of global experience he has in the industry," said Tsutomu Une, chairman, Ranbaxy in a statement. "Under his (Sobti's) leadership….Ranbaxy has realised various opportunities to repeat the strong operating performance while continuing to manage key challenges," the statement added.
The company, however, did not provide any specific reasons for the change of guard. However, industry sources said that Sobti was a make-shift arrangement for Ranbaxy ever since brothers Malvinder and Shivinder Mohan Singh sold the company to Japanese firm Daiichi.
The company also reported a robust 24 per cent revenue growth for the second quarter as sales picked up across key markets in the US, Europe, Russia and India. Revenues stood at $458 million (Rs 2,102 crore) compared to $368 million (Rs 1,795 crore) during the same quarter of last fiscal.
"The transfer of new drug discovery research assets to Daiichi will provide a sharper focus to our R&D effort, in our core area of generics. This is in line with our commitment to optimise synergies through the hybrid business model," said Atul Sobti.
During the quarter Ranbaxy recorded a 6 per cent growth in emerging market sales at $230 million (Rs 1,076 crore). Emerging markets contributed about 50 per cent to its global sales.