New Delhi: Drug major Ranbaxy Laboratories's fourth-quarter net loss narrowed to Rs 158.94 crore, mainly on account of higher sales of its Absorica acne drug. The company had posted a loss of Rs 492.44 crore a year earlier, according to a statement.
"Ranbaxy has been strengthening its base business in key markets, including India, Eastern Europe and the USA, which has helped us recover our margins," Arun Sawhney, Chief Executive Officer and Managing Director, said in a statement.
Ranbaxy also said it made a provision of Rs 257.4 crore towards the financial impact of a US ban on import of products made at its plant at Toansa. Revenue rose 6.7 per cent to Rs 2,894 crore in the quarter from Rs 2,711.2 crore in the year-ago period.
North America sales were Rs 1,020 crore, with the US accounting for Rs 910 crore, Ranbaxy said. "Growth in sales has been propelled by India, USA and East Europe and Absorica is the reason," President and Chief Financial Officer Indrajit Banerjee said on a conference call.
In January, the US Food and Drug Administration banned the import of Ranbaxy products from its Toansa plant in Punjab due to deviations from good manufacturing practices. The Toansa plant was the company's fourth in the country to be slapped with a ban by the USFDA.
Ranbaxy said it has since advanced investigation of the findings of the USFDA and submitted its response to the US health regulator on February 3. The US health regulator said it exercised its authority under a provision in a January 2012 consent decree, which permits the agency to extend those terms to any Ranbaxy-owned or operated facility if an FDA inspection finds it in violation of norms.
Ranbaxy said the remediation plan for Dewas and Paonta Sahib progresses in line with the consent decree while all commitments for the Mohali plant have been met. "We are facing some major regulatory challenges and are disappointed with the developments. I would like to assure all our stakeholders that we will do whatever is necessary to address all concerns of the USFDA and are committed to resolve them as early as possible," Sawhney said.
The company said it received Central Drugs Standard Control Organisation approval to manufacture and market Synriam in India to treat malaria. Ranbaxy got final approval from the USFDA to manufacture and market Felodipine extended-release tablets to treat hypertension, according to the statement.
With the company changing to an April-March financial year effective April 1, the current financial year is being extended to a 15-month period ending March 2014. Ranbaxy shares gained 5.69 per cent to Rs 340.05 at the close on the BSE.
