New Delhi February 26, 2014:- Ranbaxy Laboratories has halted all shipments of pharmaceutical ingredients from its Toansa and Dewas plants.
In a statement to the BSE on Tuesday, the company said it is examining processes and controls at all its active pharmaceutical ingredients (API) manufacturing and quality units. The decision comes in the backdrop of the recent US ban on products manufactured at these units. The move is likely to hit supplies to Ranbaxy’s other key markets, including Europe. Both plants — Toansa in Punjab, and Dewas in Madhya Pradesh — along with two more plants, Paonta Sahib in Himachal Pradesh and Mohali in Punjab, have been banned from exporting pharmaceutical ingredients as well as finished goods to the US.
While announcing its results for the fourth quarter recently, Ranbaxy had said the US ban on the Toansa plant had hit the company’s sales by 10-15 per cent.
“Since, the company has voluntarily withdrawn its production; we believe that it would have made alternative arrangements for production,” said Sarabjit Kour Nangra, Vice-President (Research), Pharma, Angel Broking.
Another industry expert said Ranbaxy would most probably have to procure drug ingredients from other companies in order to continue manufacturing finished medicines and this would push up costs for the company, hitting its margins.
The drug major said this voluntary action has been taken as a “precautionary measure” and shipments will be resumed after all processes have been assessed.
“A committee of the Board has been constituted … to help and assure good governance to all Ranbaxy stakeholders,” the company said in a statement.
The pharma major’s shares rose 0.99 per cent on the BSE to close at ₹367.05 apiece on Tuesday.- Business Line
