Ranbaxy reports loss for March fiscal quarter

Indian drug maker Ranbaxy Laboratories (BSE: 500359), majority-owned by Japan’s Daiichi Sankyo (TYO: 4568) and subject of an agreed $3.2 billion acquisition by Sun Pharmaceutical Industries (BSE: 524715; The Pharma Letter April 7), has released financial results for its fiscal quarter ended March 31, 2014, posting a loss, hit by write-offs related to regulatory sanctions.

Consolidated sales for the quarter were 24.4 billion rupees ($409 million), a modest rise of 1.2%. Ranbaxy reported a net loss of 736.54 million rupees for January-March, compared with a profit of 1.26 billion rupees a year ago. The mean estimate of 22 analysts was for a profit of 958.7 million rupees, according to Thomson Reuters data. Earnings before interest, tax, depreciation and amortization (EBITDA) were 1.5 billion rupees.

The takeover transaction, which has been delayed due to alleged insider trading (TPL May 5), will need various regulatory approvals as well as an approval by majority shareholders representing 75% in value of the shares present and voting at the shareholder meetings of each of Sun Pharma and Ranbaxy. Promoters of both Daiichi Sankyo and Sun Pharma, have irrevocably agreed to vote in favor of the transaction.