The boom years of the Indian pharmaceutical industry saw overseas businesses snap up Ranbaxy, Piramal Healthcare and a host of other firms, but consternation about the trend led some to try to curb such deals. Now though, with the Indian economy slowing, the government has thrown out the proposals.
Ranbaxy Laboratories got into the vaccine manufacturing business a few years ago, but now it may be looking to get out as its regulatory problems pile up. According reports, Ranbaxy is likely to sell Biovel, the vaccine company it bought in 2010.
When Ranbaxy bought vaccine supplier Biovel in 2010, the then-CEO of the beleaguered Indian generic firm called it an important part of the company's growth strategy. The CEO is long gone, having resigned within months of buying Biovel, and now Ranbaxy is reportedly ready to split up with its vaccine unit too.
New pay-for-delay lawsuits are popping up around the country. Endo Pharma and Actavis have been named, as has AstraZeneca, Teva, Ranbaxy and Dr. Reddy's. And with the U.S. Supreme Court having defined its position this year, the pay-for-delay legal issue is being litigated under a whole new set of rules.
The manufacturing problems Japan's Daiichi Sankyo acquired when it took control of generic drugmaker Ranbaxy Laboratories have been one booby trap after another: warning letters, import bans, a consent decree and a $500 million settlement with U.S. authorities.
Import bans imposed against two of India's largest generic drugmakers are already shaving away their financial performance, even though the worst is yet to come. Both Ranbaxy Laboratories and Wockhardt today reported diminished results, with Ranbaxy being pummeled hard by a variety of factors, including the ban.
India's Ranbaxy Laboratories saw its profits laid low by a variety of issues, including a ban the FDA imposed in September on the last plant in India still approved to manufacture drugs for the U.S.
Today, Novartis had the pleasure of hiking its 2013 forecast for the second time this year. And once again, it has Diovan to thank--or, to put a finer point on it, Novartis has Ranbaxy Laboratories to thank. The ongoing bumbling at the Indian generics maker means there's still no copycat version of Diovan to drain away sales of the blockbuster blood-pressure drug.
Ranbaxy Laboratories' troubled plant in New Jersey has passed an FDA inspection. Its Ohm Laboratories plant is the only one of its facilities currently approved to sell products in the U.S. after the FDA last month banned its third Indian plant from exporting to the U.S.
Ranbaxy Laboratories may be looking to buy an FDA-approved plant in India now that its three have been banned from exporting products to the U.S. The company is not commenting, but sources tell The Economic Times that the company has close to 30 applications pending for generic drugs, and could lose $1 billion in revenue if it can't get to market with copycats of drugs like Diovan, Valcyte and Nexium.