India's Ranbaxy Posts Profit Despite US Import Ban
Mon, 10/26/2009 - 5:28am
ERIKA KINETZ AP Business Writer MUMBAI, India (AP) — India's largest drug maker, Ranbaxy Laboratories Ltd., on Monday reported a $24 million quarterly profit as emerging market sales and cost cutting helped compensate for sharply falling U.S. sales. Net profit for the three months ending Sept. 30 was 1.17 billion rupees ($24 million), a turnaround from the 3.53 billion rupee loss it posted the same quarter last year, the company said. Sales fell 18 percent from the same period a year ago, to 17.2 billion rupees ($356 million). Resilient demand in emerging markets like Asia, Africa and the Middle East, which account for 62 percent of revenues, helped make up for a 30 percent drop in developed market sales. U.S. sales plunged 53 percent over the same quarter last year, largely due to the U.S. Food and Drug Administration's ban on the import of more than 30 of Ranbaxy's generic drugs last September due to quality concerns at two of its factories in India. Shares rose 2.6 percent Monday to close at 381.9 rupees a share on the Bombay Stock Exchange. Tokyo-based Daiichi Sankyo Co. last year bought a 64 percent stake in Ranbaxy for $4 billion.