Ranbaxy Q4 loss narrows to Rs396 crore
Moneylife Digital Team 05 February 2014

During the December quarter, the Daiichi Sankyo unit said it loss narrowed to Rs395.96 crore from Rs616.01 crore a year ago

Ranbaxy Laboratories (Ranbaxy), a unit of Japanese Daiichi Sankyo Co Ltd pharmaceutical company said its fourth quarter net loss narrowed despite lower sales and higher expenses on legal and professional fees.

For the quarter to end-December, the pharmaceutical company said its standalone net loss narrowed to Rs395.96 crore from Rs616.01 crore while total sales declined 5% to Rs1,327.63 crore from Rs1,401.42 crore, a year ago period.

“Ranbaxy has been strengthening its base business in key markets including India, Eastern Europe and Commonwealth of Independent States (CIS) and the US which has helped us recover our margins. We are facing some major regulatory challenges and are disappointed with the developments,” said Arun Sawhney, chief executive and managing director of Ranbaxy.

During the quarter, the Daiichi Sankyo unit made higher provisions as it faced legal threats from US Food and Drug Administration (USFDA) which had banned supplies from Ranbaxy’s Toansa plant in Punjab.

Ranbaxy made inventory provisions of Rs270.34 crore in concern of matters of its Toansa unit while spending Rs161.03 crore as legal and professional expenses and Rs128.04 crore on research and development (R&D) activities during the fourth quarter.

During December quarter Ranbaxy’s domestic market sales increased 8% to Rs591.92 crore from Rs547.64 crore while its overseas sales fell 14% to Rs735.71 crore from Rs853.78 crore, same period last year.

Ranbaxy said it had filed three abbreviated new drug application (ANDA) for the US market during the quarter.

Ranbaxy closed Wednesday 5.7% higher Rs340 on the BSE, while the 30-share Sensex ended the day flat at 20,261.

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