News WrapGet Handpicked Stories from our editors directly to your mailbox

Ranbaxy Q3 net loss widens to Rs 1,029.72 cr

The company had posted a net loss of Rs 158.94 crore during the October-December period of previous fiscal.

Ranbaxy Q3 net loss widens to Rs 1,029.72 cr

New Delhi: Ranbaxy Laboratories Wednesday reported widening of its consolidated net loss to Rs 1,029.72 crore for the third quarter ended December 31, 2014, as higher costs and foreign exchange losses hurt the embattled drug maker.

The company had reported a net loss of Rs 158.94 crore during the October-December period of previous fiscal.

Net sales of the company declined to Rs 2,587.59 crore compared to Rs 2,858.96 crore during the same period of 2013-14, Ranbaxy Laboratories said in a statement.

Shares of the company fell one percent on the BSE.

"Ranbaxy recorded good growth in India, Russia, APAC & LATAM during the quarter. However, overall sales were impacted by global currency depreciation in some markets," Ranbaxy Laboratories Ltd, CEO & Managing Director, Arun Sawhney said in a statement.

During the current quarter, the company has reviewed the carrying amount of an asset representing Minimum Alternate Tax (MAT) Credit of Rs 822.7 crore and has decided to provide for the same on grounds of conservatism, the company said.

Ranbaxy, which is being acquired by Sun Pharmaceutical Industries in a USD 4 billion deal, said the merger process is progressing well.

"The merger process is progressing well and we are working towards the completion of the pre-requisites," Sawhney said.

The company said branded and OTC category contributed Rs 1,420.2 crore accounting for 57 percent of total sales during the quarter.

Generics (including first-to-file opportunities)and others posted Rs 1,167.4 crore of sales for during the quarter, it added.

Geographically, the company's domestic sales stood at Rs 590.9 crore, a growth of 2 percent over the corresponding quarter.

In North America, sales during the quarter stood at Rs 896.3 crore.

The company said it has received the regulatory approval to launch new chemical entity Synriam in seven African countries --Nigeria, Uganda, Senegal, Cameroon, Guinea, Kenya and Ivory Coast.

"The product has since been launched in Uganda and will be made available in other countries towards end of Jan 15," it added.

The company said on January 26 it received a communication from USFDA that they have determined that Ranbaxy has forfeited its 180-day exclusivity to sell generic version of digestive disorder medicine Nexium in the American market.

"Ranbaxy is disappointed with the result and is pursuing all available legal options to preserve its rights," it said.

Ranbaxy is facing regulatory issues with the US authorities and currently all the four manufacturing plants of the drug maker in India have been banned from exporting to the US market.

The company's shares ended at Rs 699.75 apiece on the BSE, down 1.01 percent from their previous close.