India’s health ministry asked the country’s drug regulator to review documents filed in a US court in which Ranbaxy admitted it sold batches of drugs that were improperly manufactured and tested and propose a course of action, a ministry official familiar with the matter said in May. Photo: Ramesh Pathania/Mint (Ramesh Pathania/Mint)
India’s health ministry asked the country’s drug regulator to review documents filed in a US court in which Ranbaxy admitted it sold batches of drugs that were improperly manufactured and tested and propose a course of action, a ministry official familiar with the matter said in May. Photo: Ramesh Pathania/Mint
(Ramesh Pathania/Mint)

Ranbaxy keeps sales forecast as India reviews US court ruling

Ranbaxy says it is cooperating with hospitals and regulatory authorities to assure them of product safety

Mumbai: Ranbaxy Laboratories Ltd said the company expects to meet its full-year sales forecast even as India’s regulator reviews the safety of its drugs.

“The nation’s largest drugmaker is cooperating with hospitals and regulatory authorities to assure them of the safety of its products," chief executive officer Arun Sawhney said in an interview with Bloomberg TV India on Wednesday. “I see no reason why there should be a change in Ranbaxy’s brand."

India’s health ministry asked the country’s drug regulator to review documents filed in a US court in which Ranbaxy admitted it sold batches of drugs that were improperly manufactured and tested and propose a course of action, a ministry official familiar with the matter said in May. Ranbaxy agreed earlier in the same month to pay $500 million to resolve the US matter.

“I recognize that there were some shortcomings in the past and we have and I assure again, taken measures to rectify all the shortcomings," Sawhney said in Gurgaon, where the company is based. “They will never, ever happen in the future. Our stakeholders have faith in us."

Ranbaxy fell 0.29% to 379.95 on BSE on Wednesday, widening its loss this year to 25%. The stock dropped the most in four years on 23 May after Daiichi Sankyo Co., its Tokyo-based parent, said it was pursuing legal remedies against former shareholders for hiding information relating to the US probe.

The Indian company continues to file applications for new generic drugs in the US, Sawhney said. Ranbaxy is focusing on being the first among generic-drug companies to seek regulatory approval to make copies of medicines going off patent, he said.

Ranbaxy is also investing in manufacturing capability in Malaysia, Egypt, Nigeria and South Africa, he said.

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