Ranbaxy swings to profit in Q3

Ranbaxy swings to profit in Q3

A laboratory assistant examines samples inside a laboratory in Siliguri in this November 2006 file photo. Reuters

The company, however, said its consolidated net sales during the quarter fell by 18 per cent at Rs 1,720.5 crore, against Rs 18,88.4 crore in the same period a year ago.

"Revenue growth in some strategic geographical markets and a sharp focus on cost efficiency have been the underlying themes this quarter. With good achievements in these fronts, we are confident that we are on the path to recovery," Ranbaxy Laboratories CEO and Managing Director Atul Sobti told reporters through a teleconference from Tokyo.

The company's sales in the emerging markets, including Asia, CIS countries, Latin America and Africa, which account for 62 per cent of its overall revenues, were at Rs 1,067.8 crore, similar to that of the corresponding period last fiscal.

Sales in developed markets had declined by 30 per cent during the quarter at Rs 525.7 crore primarily on account of sales in the US slumping by 53 per cent at Rs 213.8 crore.

Sobti said the company is co-operating with the US Food and Drug Administration (USFDA) to remove the ban imposed on export of drugs manufactured at its two plants at Poanta Sahib (in Himachal Pradesh) and Dewas (in Madhya Pradesh).

"For the Poanta Sahib plant we are taking corrective measures and a third party audit is being undertaken after the USFDA had imposed import alert and Application Integrity Policy (AIP)," he said.
For the Dewas plant, Ranbaxy has invited the USFDA for a re-inspection and is awaiting a response, he added.

"It is depends on the USFDA," he said when asked by when the firm expects the issues at the two plants to be sorted and the company can resume exporting products made there to the US again.

Last year the USFDA had banned 30 generic drug produced at the two plants citing violation of good manufacturing practice and subsequently AIP on the Poanta Sahib was imposed, which meant that the company's drug applications are not reviewed.

He said Ranbaxy had filed the first abbreviated new drug application from its new plant at Mohali SEZ in October.

Sobti said the company along with its Japanese parent Daiichi Sankyo will come out with a three-year plan to focus on branded drugs and its back-end support, which includes research and development and marketing.

During the third quarter Ranbaxy had filed 72 applications with different regulators worldwide and received 177 approvals taking the total number of filing to 244 and approvals to 310 during the year.