Ranbaxy in damage control mode, to meet with Jaslok, other hospitals

In order to stem the slide in its reputation, Ranbaxy is reportedly set to meet with officials from the Jaslok Hospital in south Mumbai and Medanta Medicity in Gurgaon among others.

Jaslok Hospital in south Mumbai had decided to err on the side of caution after the US FDA found the company had not followed adequate rules in manufacturing drugs meant for the American market, which resulted in a ban of around 30 Ranbaxy drugs.

Other hospitals like Medanta and Apollo Hospitals had reportedly begun reviewing their own policies, and in order to prevent a further slide in their reputation Ranbaxy is indulging in some firefighting measures.

Losing accounts of major hospitals could hurt Ranbaxy’s credibility considerably and may lead to other hospitals also taking precautionary measures, which could pull down the company’s sales significantly.

“It is natural that the India team will meet them (Jaslok) to address their concern. This is always done for any sales account that we lose,” an unnamed source from Ranbaxy was quoted as saying in the Business Standard.

The source added that the firm’s steps were part of an “image building initiative globally”.

The pharmacuetical firm is reportedly working to ensure other hospitals, particularly the reputed hospitals, don’t follow Jaslok’s example.

The Indian Medical Association that represents medical practitioners has asked the Drug Controller General of India (DCGI), to investigate the quality of drugs manufactured and sold by Ranbaxy.

In the last week, Ranbaxy shares have taken a beating, with its share price tumbling 14% from the beginning of this month.