Ranbaxy promises action against employees responsible for US ban

Our Bureau New Delhi | Updated on November 24, 2017 Published on January 28, 2014

Ranbaxy Laboratories Ltd has said it will take “stern action” against the employees responsible for a recent import ban by the US drugs regulator on its Toansa plant in Punjab.

A company official told Business Line the management is still analysing the situation and considering the actions need to be taken.

Industry sources say the management might fire 10 employees involved in the production process at the Toansa plant for failing to maintain quality at the facility. However, the company refused to comment on what kind of action would be taken. The US Food and Drug Administration on January 24 issued an import alert against the Toansa plant, banning all products made at this facility from entering the US market.

Ranbaxy has been mired in controversies over the past couple of years, with recurring quality concerns at its plants. All of its plants in India - Toansa, Mohali (Punjab), Dewas (Madhya Pradesh) and Poanta Sahib (Himachal Pradesh) - are now banned by the US regulator.

Since the US and India are the two main markets of the drug-maker, the action by the FDA is likely to have a huge impact on its revenue.

According to estimates, the alert on the Toansa plant could hit Ranbaxy’s US sales by 35-40 per cent over the next three to four quarters.

Published on January 28, 2014
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