Ranbaxy suspends US shipments after bans
February 26, 2014 - 12:00:00 am
MUMBAI: Indian drugmaking giant Ranbaxy Laboratories said yesterday it was suspending shipments from two of its plants following US import bans on its products over safety concerns.
In a filing to the Bombay Stock Exchange, Ranbaxy said it was “temporarily putting on hold” shipments of active pharmaceutical ingredients from facilities at two of its plants — Toansa in the northwest and Dewas in central India. “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,” said the statement.
“The company will resume shipments after reassuring them about the processes and controls at these facilities.”
It said a committee had also been established to oversee manufacturing and quality operations.
The United States, one of Ranbaxy’s biggest markets, has slapped import bans on four of the group’s Indian manufacturing plants, including Toansa and Dewas, for failing to meet “good manufacturing practices”.
Japanese drugmaker Daiichi Sankyo bought Ranbaxy in 2008, believing its dominance in cheap generic medicines and developing markets would help the firm grow. But the Indian company has been a weight on Daiichi’s books ever since due to its regulatory problems. The New Delhi-based drug manufacturer’s stock finished the day at Rs367.05, up 0.99 percent, or Rs3.60, on the Bombay Stock Exchange.
Ranbaxy reported a consolidated net loss of Rs1.59bn ($25.6m) for the quarter ended December, compared with a Rs4.92bn loss a year earlier, thanks to rising sales in key markets and currency gains. But the company faces an uphill battle to repeat the performance next quarter after the bans from the United States, which traditionally made up some 40 percent of its sales.AFP