Ranbaxy Laboratories Ltd. (RBXY), which is in the process of being acquired by Sun Pharmaceutical Industries Ltd. (SUNP), posted a quarterly loss after finance costs rose and the U.S. banned its Punjab factory.
The company reported a loss of 736.5 million rupees ($12.3 million) in the three months ended March compared with a profit of 1.26 billion rupees a year earlier, the Gurgaon-based company said in a statement to the stock exchange today.
With import bans on four of its Indian facilities and increased regulatory compliance costs, Ranbaxy’s challenge is to raise profitability which lags behind rivals including Dr. Reddy’s Laboratories Ltd. If the acquisition is approved, Ranbaxy would need to resolve production problems to bolster its new owner’s pipeline of drugs.
Ranbaxy’s chief bulk ingredient manufacturing facility in Toansa, Punjab was banned from supplying to the U.S. in January, after a week-long FDA inspection earlier in the month found manufacturing lapses.
A unit of Japan’s Daiichi Sankyo Co., Ranbaxy’s products include a generic version of Pfizer Inc.’s cholesterol-lowering drug Lipitor.
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