Ranbaxy’s profits soar, but US ban still looms

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Ranbaxy’s profits soar, but US ban still looms

INICIO/Noticias Farmacéuticas | Posted 04/02/2011 0 Post your comment

The generics’ giant and India’s largest pharmaceutical manufacturer, Ranbaxy, has reported strong results for the third quarter of 2010, but concerns remain about the US import ban that is still in place on many of the firm’s generics.

Net profit for the generics’ giant soared to 3.13 billion rupees (US$67 million) for the third quarter of 2010.

Sales increased by 13% to 18.87 billion rupees, driven by record sales in North America, which increased by more than 70%. Growth in North America was largely attributed to the continued success of Ranbaxy’s generic version of GlaxoSmithKline’s herpes drug, Valtrex (valacyclovir), despite losing exclusivity.

Sales in Europe and the rest of the world decreased by 5% and 12%, respectively, while in India and the CIS region, revenues climbed by 18% and 11%, respectively.

Ranbaxy, which is part of the Japanese Daiichi Sankyo Group, added that it made 37 filings and received 47 approvals for dosage forms during the quarter.

However, the situation in the US still casts a shadow over the business. Ranbaxy has been cited several times in recent years for manufacturing violations and over two years ago, an import ban was placed on 30 of Ranbaxy’s generic products due to manufacturing violations at its Dewas and Paonta Sahib facilities in India.

The India-based generic manufacturer says it is “co-operating fully with the US FDA and the Department of Justice for early and comprehensive resolution of all outstanding issues”. The company claims that it has put in place “enhanced systems and processes in upgrading its manufacturing and R & D facilities”, thus making it “pro-actively compliant for inspection by regulators”.

Mr Arun Sawhney, Managing Director, Ranbaxy, commented that the firm would focus on “seeking a speedy resolution to the challenges in the USA”. He added that “our key markets continued to perform well” and the focus will now be on “bettering operational performance [and] maximising synergies with Daiichi Sankyo”.

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Source: Ranbaxy