Ranbaxy down on same quarter last year following FDA fine

Indian generic pharma company Ranbaxy (NSE: RANBAXY), has reported consolidated sales of 23.7 billion rupees ($394 million), with earnings before interest, tax, depreciation and amortization standing at Rs. 2.4 billion. The quarter to the end of June saw Ranbaxy posting a net loss due to making a provision related to ongoing settlement discussions with US authorities.

The company reported 12% growth in April to June 2014 compared to 10% growth in the Indian pharma market over the same period, although the company’s net loss over the period was 1.86 billion rupees. Sales for the quarter were 23.7 billion rupees compared to  25.8 billionrupees  during the corresponding quarter, with branded and over-the-counter accounting for 58% of all sales. Generics accounted for 10 billion rupees.

Earnings per share for the period were  17.80 rupees, an increase on the same quarter last year when the oiss er share was  14.4 rupees, after the imposition of $500 million in fines from the US Food and Drug Adminstration over its manufacturing practices. According to Thomson Reuters, the company had been expected to post a profit of 698 million rupees.

Arun Sawhney, chief executive and managing director of Ranbaxy, said: “We continue to work towards growing our base business with focus on emerging markets, while at the same time, restoring the business on growth trajectory in our traditional markets such as USA and Europe.”