Companies

Ranbaxy narrows loss to ₹186 cr on US settlement provision

Our Bureau New Delhi | Updated on July 29, 2014

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Posts 12% growth in Indian business

Ranbaxy Laboratories has posted a loss of ₹185.92 crore for the first quarter of the current fiscal.

The drug-maker had reported a loss of ₹524.24 crore in the corresponding period of the previous fiscal.

Settlement provision

The June quarter loss has primarily been a result of a settlement provision of ₹237.75 crore, which has been set aside for the ongoing settlement discussions with authorities in the US.

Ranbaxy’s Indian business grew 12 per cent during the quarter, while the total pharma market’s expanded by 10 per cent.

The company had received a shock early this year with the US Food and Drug Administration (FDA) banning the last of its plants in India — Toansa, Punjab.

The move had resulted in many European countries inspecting the facility as well.

However, in June, the European Union authorities restored the EU Good Manufacturing Practice certificate for the Toansa plant.

Further, in the same month, the US FDA also gave its nod to Ranbaxy to manufacture and market a new drug, restoring hope for the company. On the back of this, Arun Sawhney, Chief Executive Officer and Managing Director, said the company is focusing on “restoring the business on growth trajectory in our traditional markets such as the US and Europe”.

Sawhney added that the company is further working towards growing business in emerging markets.

Ranbaxy, which is in the process of completing a deal for merging itself with Sun Pharmaceutical Industries, raked in an income of ₹2,426.25 crore, while new sales stood at ₹2,372.24 crore during the first quarter.

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Published on July 29, 2014
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