Recall leads to loss for Ranbaxy



Ranbaxy Laboratories, India's top drug maker by sales, said its base business would grow a modest 10 per cent this year after reporting a surprise quarterly loss on product recall charges.

Controlled by Japan's Daiichi Sankyo, Ranbaxy reported a quarterly net loss of 4.92 billion rupees (Dh332.8 million) after setting aside 1.86bn rupees towards recall costs. Analysts on average had estimated consolidated net profit at 1.44bn rupees on net sales of 26.96bn rupees, according to Thomson Reuters estimates.

The drug maker in November voluntarily recalled its cholesterol-lowering generic of Lipitor from the US market after it discovered contamination with tiny glass particles in certain doses of the drug.

"This is really bad. This raises serious questions about transparency," said Daljeet Kohli, the head of research at brokerage IndiaNivesh.

"The company has been saying that this recall was voluntary and now it has made a huge provision for costs, which is not a good thing for any company to do."

After the product recall, Ranbaxy's market share of generic Lipitor fell to less than 3 per cent.

Ranbaxy launched the first generic version of Pfizer's Lipitor in 2011 and during its first six months on the market the company generated sales of nearly US$600 million (Dh220.4m), according to analysts estimates.

The company said it expects to achieve sales of more than 120bn rupees in the current fiscal year ending in December, compared with 124.6bn rupees reported last year.

Valued at $3.2bn, shares in Ranbaxy fell 3.95 per cent to close at 416.70 rupees yesterday. The shares have fallen 17.6 per cent this year compared to a 3.2 per cent drop in the BSE healthcare index.

* Reuters

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Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind

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Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
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Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

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Roger Federer 19 (8 Wimbledon, 5 Australian Open, 5 US Open, 1 French Open)

Rafael Nadal 16 (10 French Open, 3 US Open, 2 Wimbledon, 1 Australian Open)

Novak Djokovic 12 (6 Australian Open, 3 Wimbledon, 2 US Open, 1 French Open)

Andy Murray 3 (2 Wimbledon, 1 US Open)

Stan Wawrinka 3 (1 Australian Open, 1 French Open, 1 US Open)

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Gaston Gaudio 1 (1 French Open)

Marat Safin 1 (1 Australian Open)

Juan Martin del Potro 1 (1 US Open)

Marin Cilic 1 (1 US Open)

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Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km

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Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)

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Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

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The specs

Engine: Two permanent-magnet synchronous AC motors

Transmission: two-speed

Power: 671hp

Torque: 849Nm

Range: 456km

Price: from Dh437,900 

On sale: now

The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 258hp from 5,000-6,500rpm

Torque: 400Nm from 1,550-4,000rpm

Transmission: Eight-speed auto

Fuel consumption: 6.1L/100km

Price: from Dh362,500

On sale: now

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Mexico
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Group C

Belarus
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Group D

Brazil
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Nigeria

Business Insights
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