Mumbai-based Sun Pharmaceutical Industries saw net profit slump nearly a third in its financial second quarter as costs related to its purchase of troubled Ranbaxy Laboratories continue to hound operations.
The merger with Ranbaxy by Sun Pharmaceuticals has given the company scale to move up the food chain in the industry but has also come at a cost to the enlarged entity, Business Today in India reports.
When the FDA last year yanked away its initial approval of Ranbaxy's generics of two blockbusters including the heartburn med Nexium, the Indian drugmaker fired back with a lawsuit against the FDA. But Ranbaxy is now owned by Sun Pharmaceutical, which sees no upside to fighting with the agency, and so it has dropped the litigation.
Continued problems at Sun Pharmaceutical's Halol facility in India sparked the U.S. Food and Drug Administration to pull its approval for the company's research arm to launch a drug for seizures.
In a new wrinkle in Sun Pharmaceutical's plans for merging Ranbaxy Laboratories, the Indian company is putting together a list of plants that it will sell or close and among them is a facility in Tipperary, Ireland.
A Sun Pharmaceutical plant that has been a problem for the FDA, and so for the Indian drugmaker, is again having to recall a product that the company said failed dissolution testing.
Sun Pharmaceutical is expected to start looking at the management of some of the Ranbaxy Laboratories manufacturing sites, with an eye toward flattening out the chain of command, as Sun Managing Director Dilip Shanghvi continues to clean house after completing the Ranbaxy acquisition.
India's Wockhardt has voluntarily recalled 85,000 cartons of over-the-counter heartburn treatment famotidine tablets, calling the state of its plans to recover from U.S. FDA import bans on two plants into further question, Business Line said.
A slew of senior executives at the Ranbaxy unit of India's Sun Pharmaceutical and Cipla are likely polishing up their Linkedin profiles and calling head hunters as something of a cull sweeps through management ranks at those companies and wider, highlighting deep changes in the industry.
After snapping up the troubled Indian generics maker Ranbaxy Laboratories in an all-stock deal last year, Sun Pharma has sent 18 top executives at its former rival packing, including Ranbaxy President and CFO Indrajit Banerjee and VP of marketing Maninder Singh, sources told The Economic Times.