Drug maker Ranbaxy Laboratories today said its consolidated net loss widened to Rs 2,982.7 crore in the fourth quarter ended December 31,mainly on account of provisions made in connection with the consent decree it signed with the US authorities.
The company had posted net loss (after tax and minority interest) of Rs 97.4 crore in the same period of previous year,Ranbaxy said in a statement.
In December,the company had reached an agreement with the US health regulator to lift a ban on import of drugs from its certain factories in India,a move which could see the drug maker pay up to USD 500 million as fine.
The company had said “it intends to make a provision of USD 500 million (nearly Rs 2,640 crore) in connection with the investigation by the US Department of Justice,which the company believes will be sufficient to resolve all potential civil and criminal liability.”
In 2008,the USFDA had banned 30 generic drugs produced by Ranbaxy at its Dewas (Madhya Pradesh) and Paonta Sahib and Batamandi unit in Himachal Pradesh,citing gross violation of approved manufacturing norms.
In the same year,the US Department of Justice had moved a motion against the company in a local court alleging forgery of documents and fraudulent practice.
Commenting on the results Ranbaxy CEO and MD Arun Sawhney said: “I am satisfied with the progress we are making in resolving the long standing issues with the US regulators. The settlement with the US FDA and provision for eventual penalties that the DOJ may levy,brings greater predictability to our business in the US,one of our largest markets.”
Net sales of the company,however,rose to Rs 3,738 crore for the fourth quarter ended December 31,2011,against Rs 2,086.4 crore in the same period previous year.
“I am delighted to share with you that Ranbaxy is the first pharma company of Indian origin to have surpassed sales of USD 2 billion,” Sawhney added.
For entire 2011,the company posted net loss of Rs 2,899.7 crore,as against net profit of Rs 1,496.7 crore in 2010.
Consolidated net sales of the company stood at Rs 9,957.8 crore in 2011,as compared to Rs 8,535.4 crore in 2010.
During the October-December quarter,the company launched Atorvastatin,a generic version of Pfizer’s blockbuster drug Lipitor,with 180 days exclusivity in the US.
According to IMS 2010 data,Lipitor had sales of USD 7.9 billion in the US market.
During the quarter,Ranbaxy’s sales in North America were Rs 1,966.6 crore,aided by monetisation of first to file exclusivities,the company said.
Sales in the Indian market were Rs 481.8 crore.
In Europe,the sales stood at Rs 380.7 crore,driven mainly by revenue growth in South and Central Europe.
On a standalone basis,the company posted net loss of Rs 2,710.3 crore for the fourth quarter. It had a net profit of Rs 55.2 crore in the same period last year.
For the enitre year,the company posted standalone net loss of Rs 3,052 crore,while it had net profit of Rs 1,148.7 crore in the previous year.
During the quarter,10 regulatory agencies including the USFDA,World Health Organisation,European Union,Korea,Malaysia etc inspected Ranbaxy¿s API and Dosage Form (DF) facilities,in various locations across the world,including India,the company said.
For 2012,the company said it expects to achieve base case sales of USD 2.2 billion not taking into account any upside from FTF exclusivity during the year.
Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan’s third largest drug-maker bought a majority stake for Rs 22,000 crore.
Shares of Ranbaxy Laboratories today closed at Rs 439.95 on BSE,up 0.25 per cent from its previous close.