Ranbaxy to overhaul operations

Ranbaxy has today (February 25th) announced the suspension of all drug shipments from two of its Indian plants.

This comes after the US Food and Drug Administration (FDA) moved to ban imports from the firm's facilities in the country.

In a statement to the Bombay Stock Exchange, Ranbaxy said it is suspending all shipments of active pharmaceutical ingredients from its manufacturing plants at Toansa and Dewas.

The company – which is 64 per cent owned by Japan's Daiichi Sankyo – described the move as "a voluntary decision . . . taken as a precautionary measure and out of an abundance of caution".

Furthermore, Ranbaxy is establishing a new "quality and integrity committee" on its board in an effort to "provide oversight on the company’s manufacturing and quality operations, systems, organisation and integrity".

Around 16 per cent of the firm's sales are derived from Europe and the Commonwealth of Independent States, though authorities in these countries have not restricted imports of the products.