India's drugmaker Ranbaxy swings into quarterly net loss

India's biggest generic drugmaker Ranbaxy Laboratories swung into a net loss in the third quarter ended September from a profit a year earlier, owing to a weak rupee and foreign exchange losses.

The Indian firm, majority-owned by Japan's Daiichi Sankyo, posted a consolidated of 4.5 billion rupees ($73 million), against a 7.5 billion rupee profit a year earlier.

Adverse currency movements in the quarter dragged the company into the red, Ranbaxy said.

"There was a net charge of 3.6 billion rupees during the quarter on account of forex items," it added.

Sales for Ranbaxy, headquartered in Gurgaon near New Delhi, rose just 3.05 percent to 27.5 billion rupees in the quarter from a year earlier, just below analyst expectations.

"The company continues to grow in its focus branded markets in Asia, East Europe, CIS (Commonwealth of Independent States) and Africa," said Arun Sawhney, managing director of Ranbaxy.

Ranbaxy has been hit by controversy after the US Food and Drug Administration placed bans on drugs from three of its manufacturing plants.

In May, Ranbaxy had pleaded guilty to US charges of selling adulterated antibiotic, epilepsy and other drugs, and agreed to a record $500 million fine.

The firm assured shareholders in September that it was taking "stringent steps" to resolve a US ban on imports of medicines made at its newly renovated showcase plant in northern India.

Ranbaxy is more than 60 percent owned by Japan's Daiichi Sankyo, which bought the firm in 2008 believing its dominance in cheaper generic medicines and developing markets would help the Japanese firm grow sales as Daiichi's drugs came off patent.

add to favorites email to friend print save as pdf

Related Stories

Ranbaxy taking 'stringent steps' to end US FDA ban

Sep 21, 2013

India's biggest drugmaker by sales, Ranbaxy Laboratories, has assured shareholders it is taking "stringent steps" to resolve a US ban on imports of medicines made at its newly renovated showcase plant.

India's Ranbaxy promises to address issues over US ban

Sep 17, 2013

India's Ranbaxy Laboratories, one of world's biggest generic drug makers, said Tuesday it would take "all necessary steps" to help lift an import ban by the US health regulator on one of its factories.

More pain for Japan's Daiichi hit by Ranbaxy fraud

Jun 09, 2013

Daiichi Sankyo believed it had scored a coup in 2008 when it outbid rivals to buy Indian generics giant Ranbaxy for $4.6 billion but its foray into the high-growth copycat drugs arena has brought the Japanese drugmaker only ...

India says its drugs safe after generics fraud

Jun 03, 2013

India, known as the "pharmacy to the world", Monday defended its lucrative generic drug industry as safe and strongly regulated after the nation's biggest drug firm pleaded guilty to US charges of making adulterated medicines.

Recommended for you

Health care M&A leads global deal surge

Nov 23, 2014

In a big year for deal making, the health care industry is a standout. Large drugmakers are buying and selling businesses to control costs and deploy surplus cash. A rising stock market, tax strategies and ...

US approves new, hard-to-abuse hydrocodone pill (Update)

Nov 20, 2014

U.S. government health regulators on Thursday approved the first hard-to-abuse version of the painkiller hydrocodone, offering an alternative to a similar medication that has been widely criticized for lacking ...

Soaring generic drug prices draw Senate scrutiny

Nov 20, 2014

Some low-cost generic drugs that have helped restrain health care costs for decades are seeing unexpected price spikes of up to 8,000 percent, prompting a backlash from patients, pharmacists and now Washington ...

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.