Ranbaxy Posts Loss After Write-Offs on US Import Bans
Drugmaker Ranbaxy Laboratories Ltd, which has agreed to be acquired by Sun Pharmaceutical Industries Ltd for $3.2 billion (Rs 19201.6 crore at $1 = 60.0050 rupees), posted a loss in the March quarter, hit by write-offs related to regulatory sanctions.
A series of import bans by US regulators on Ranbaxy's plants, citing poor manufacturing quality, has hurt sales in the United States, its primary export market.
The US Food and Drug Administration (FDA) in January banned the sale of drugs made with ingredients prepared at Ranbaxy's Toansa plant in India after an inspection found the factory's processes did not meet the FDA's manufacturing standards.
Ranbaxy, owned by Japan's Daiichi Sankyo Ltd, said on Friday it had made a provision of Rs 62.95 crore ($10.5 million) in the quarter for inventory write-offs and other costs related to the ban.
It also made a provision of about Rs 70 crore for impairment of goodwill in subsidiaries and reduction in the value of an investment in an associate, the company said in a statement. It did not give details.
As a result, Ranbaxy reported a net loss of Rs 73.654 crore for January-March, compared with a profit of Rs 126 crore a year ago. The mean estimate of 22 analysts was for a profit of Rs 95.87 crore, according to Thomson Reuters data.
Net sales rose 1.2 per cent to Rs 2,440 crore.
Ranbaxy said it had responded to the FDA's concerns related to the Toansa plant and that shipments from the facility were likely to be "resumed shortly".
The Toansa ban followed similar action at Ranbaxy's three other India plants. That left its New Jersey subsidiary Ohm Laboratories Inc as its only permitted maker of drugs for a market that accounted for 32 per cent of sales in the latest quarter.
The company is working closely with regulatory agencies to address their concerns, chief executive Arun Sawhney said in a statement.
Shares in Ranbaxy, valued at about $3.3 billion, ended down 1.3 per cent at Rs 463.55 on Friday, while the Mumbai market rose 3 per cent.
Copyright @ Thomson Reuters 2014
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
