Ranbaxy Laboratories has posted a net loss of 3.95 billion rupees, or $96 million, for the third quarter, compared to a 2.07 billion rupee profit in the like, year-earlier period, hit by currency losses and a write-down of inventories due to the US import ban placed on 30 of the Indian drugmaker’s generics.
The US Food and Drug Administration imposed the ban over “ongoing procedural violations in manufacturing” at Ranbaxy’s Dewas and Paonta Sahib facilities not long after claims were made that the Gurgaon-based firm had falsified data on treatments that were eventually approved. These claims have been vehemently denied.
Despite these problems, Ranbaxy posted a 14% rise in sales to 18.88 billion rupees, boosted by strong growth in the emerging markets. The latter accounted for 56% of global sales and grew by 20%, led by strong performances in Romania, the Commonwealth of Independent States and Latin America.
US sales reached 4.14 billion rupees, flat on the same period last year and Ranbaxy noted that its share of the generics market there stood at 10%. Revenues were boosted by the approval of an authorised generic version of AstraZeneca’s Prilosec (omeprazole).
In Europe, sales were up 15% to 3.65 billion, helped by a strong performance in Poland, Italy, the Nordic countries and the Baltic States. However, the firm noted a downward trend in the UK, France and Germany “due to continuing competitive and pricing pressures”.
Commenting on the results, chief executive Malvinder Mohan Singh acknowledged that the quarter “had its challenges including unprecedented forex movement and some losses relating to the turn of events on the FDA front”. He added that “we continue to cooperate closely with the US authorities and remain positive that outstanding issues will be resolved”.
Mr Singh also commented on the firm’s forthcoming takeover by Japan’s Daiichi Sankyo which will “create a strong global innovator and generic powerhouse” He added that the “landmark deal” is close to completion.
