Ranbaxy Quarterly Profit Falls, Chief Steps Down
August 12, 2010
According to the Associated Press, India''s Ranbaxy Laboratories suffered a 52 percent fall in quarterly profit as currency volatility offset bumper sales of generic drugs and said its chief executive will step down next week after just over a year in the job. The company gave no reason for the surprise departure, effective Aug. 19, of Atul Sobti, who is also managing director. Arun Sawhney, now president of the company''s global pharmaceuticals business, will take his place as managing director. Ranbaxy reported an April-to-June net profit of 3.3 billion rupees ($72 million) compared with a profit of 6.9 billion rupees ($139 million) a year earlier. The drop in profit was less than expected, reflecting bumper U.S. sales of Ranbaxy''s generic version of Valtrex, a blockbuster herpes drug made by GlaxoSmithKline. The U.S. Food and Drug Administration banned over 30 of Ranbaxy''s generic products in 2008 due to manufacturing quality concerns at some plants. Then, in February 2009 U.S. regulators said Ranbaxy lied about some test results. Those issues have not yet been resolved, and Ranbaxy said it "continues to cooperate" with the FDA and Department of Justice.