Ranbaxy Q4 loss at Rs 492 cr, sees modest growth in 2013

New Delhi: Drug major Ranbaxy Laboratories today reported a consolidated net loss of Rs 492.44 crore for the fourth quarter ending December 31, 2012, mainly on account of recall of its cholesterol lowering drug atorvastatin calcium tablets in the US market and currency fluctuation.

The company had posted a consolidated net loss of Rs 2,982.76 crore during the corresponding quarter of previous fiscal. During the period under review, consolidated net sales of the company stood at Rs 2,670.80 crore as against Rs 3,752.01 crore for the same quarter last fiscal.

[caption id=“attachment_640748” align=“alignleft” width=“380”] For the full fiscal year ended December 31, 2012 the company had posted a consolidated net profit of Rs 922.76 crore. Reuters[/caption]

“Profitability for the quarter under consideration was primarily impacted by the voluntary recall which impacted the quarter by Rs 186 crore and mark-to-market (MTM) loss of Rs 261.9 crore on long term derivative contracts and foreign currency loans owing to a weaker rupee,” the company said.

For the full fiscal year ended December 31, 2012 the company had posted a consolidated net profit of Rs 922.76 crore as against loss of Rs 2,899.72 crore for the year ago period. Its net sales for the year 2012 were at Rs 12,252.89 crore as against Rs 9,970 crore in 2011.

Commenting on the results, Ranbaxy CEO & MD Arun Sawhney said: “2012 was a mixed year for us. While we delivered our strongest ever sales performance monetising our major key product opportunities, we also faced challenges, primarily the recall of atorvastatin in the US market at the end of the year”.

The company recalled atorvastatin, its generic version of Lipitor, from the US market due to presence of foreign particles in 41 lots. Since then several corrective and preventive actions (CAPA) have been undertaken and the company has commenced shipment of the API to the company’s formulation facility in the US, Sawhney said.

During the year ended December 31, 2011, the company had recorded a provision of $500 million towards negotiating a settlement with the Department of Justice (DoJ) of the US for resolution of a potential civil and criminal allegations by DoJ, Ranbaxy said.

“We have made good progress on the Consent Decree honouring all our commitments till date,” he added. In line with company’s focus on differentiated products and branded strategy for the developed markets, it launched Absorica, as an NDA (new drug application) in the dermatological segment in US, he added.

During the year the company launched a new drug, Synriam, for the treatment of plasmodium falciparum malaria, in adults, the company said. Giving outlook for the year 2013, the company said it expects its base business to grow by over 10 percent.

Shares of Ranbaxy Laboratories today closed at Rs 417.30 apiece on BSE, down 3.66 percent from its previous close.

PTI