You are on page 1of 3

Pharma CEOs | Ranbaxy Chief Steps Down, Quarterly Profit Falls 52% | Pharmaceuti ...

Page 1 of 3

Ranbaxy Chief Steps Down, Quarterly Profit Falls 52%
India's Ranbaxy Laboratories suffered a 52 percent fall in quarterly profit Thursday as
currency volatility offset bumper sales of generic drugs and said its chief executive will step
down next week after just over a year in the job.
The company gave no reason for the surprise departure, effective Aug. 19, of Atul Sobti, who
is also managing director.
Arun Sawhney, now president of the company's global pharmaceuticals business, will take
his place as managing director.
Ranbaxy reported an April-to-June net profit of 3.3 billion rupees ($72 million) compared
with a profit of 6.9 billion rupees ($139 million) a year earlier.
The fall was due to large foreign currency gains in the June 2009 quarter, which were not
replicated this year, said Bino Pathiparampil, an analyst at Mumbai's IIFL Capital.
But the drop in profit was less than expected, reflecting bumper U.S. sales of Ranbaxy's
generic version of Valtrex, a blockbuster herpes drug made by GlaxoSmithKline.
A poll of 21 analysts by Thomson Reuters had forecast net profit of 1.3 billion rupees.
"If we remove the U.S., overall it's continuing to be dull in terms of growth and
profitability," Pathiparampil said.
Ranbaxy's period of exclusive sales for generic Valtrex ended during the June quarter and
the company has no prospects for a replacement until December.
"There is going to be some pressure going forward," Pathiparampil said. "The next big
exclusive product in December is potentially Aricept but we're not sure that's going to
Aricept is an Alzheimers drug sold in the U.S. by Pfizer and Japan's Eisai Pharmaceuticals.


with the launch of 31 new products in India. Those issues have not yet been resolved. The U. transferring its drug discovery research to the India unit of Japan's Daiichi Sankyo. Quarterly Profit Falls 52% | Pharmaceuti .S. on the Bombay Stock Exchange in an otherwise flat 08/18/2010 Abbott Warning Cites Lack of Worker Qualifications From 08/17/2010 US FDA Head Says China Improving Drug Safety 08/13/2010 Register For Stevens Institute of Technology's Fall 2010 Semester 08/12/2010 J&J Discloses More Subpoenas Over Consumer Recalls http://www. The stock closed down 0. Ranbaxy decided to refocus on generics during the quarter. Merck Make List of Top 25 'Layoff Kings' From DailyFinance. grew 6 percent. regulators said Ranbaxy lied about some test results. up 22 percent from the same period last 08/19/2010 Pharma's Contraction Leads to Outsourcing Hires From Portfolio. More News: 08/19/2010 Dumped in a Parking Lot: How Pfizer Fires Sales Reps It Doesn't Like From 08/18/2010 Pfizer. Developed markets led growth.html?page=print 8/19/2010 . which paid $4 billion for a controlling stake in Ranbaxy in 2008.pharmamanufacturing. the company said.Pharma CEOs | Ranbaxy Chief Steps 08/17/2010 Aspen to Buy Sigma's Drugs Unit for A$900 Million From BusinessWeek.. with sales up 63 percent as North American revenues doubled on strong demand for generic Valtrex.5) a share. Then.5 percent.. which account for half of revenues. in February 2009 U. Food and Drug Administration banned over 30 of Ranbaxy's generic products in 2008 due to manufacturing quality concerns at some plants. Emerging market and Ranbaxy said Thursday it "continues to cooperate" with the FDA and Department of Justice.0 billion rupees ($458 million). at 445.2 rupees ($9. Page 2 of 3 Sales for the April-June quarter were 21.

.html?page=print 8/19/2010 . Page 3 of 3 08/10/2010 Study Reveals 63% of Pharmaceutical Companies Rely on Third-Party Outsourcing 08/05/2010 Staff and Investors Left in Dark at Sanofi.Pharma CEOs | Ranbaxy Chief Steps Down. All rights reserved. IL 60143. Phone: 630-467-1300 http://www. Quarterly Profit Falls 52% | Pharmaceuti .com/industrynews/2010/ All news » Copyright © 2004 — 2010 Pharma Manufacturing. Itasca. Genzyme From Reuters..pharmamanufacturing. 555 West Pierce Rd. Suite 301.