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      Ranbaxy will set up Japan-focused unit


      Ranbaxy Laboratories, the country’s biggest drugmaker, is looking to set up a manufacturing unit in India to cater to its Japanese generics market, according to its senior official.

      The company is looking to scale up operations in Japan from 2012 when the Japanese government’s directive to have 30% of the prescription volumes from generics kicks in.

      “They (Japan) have a plan that by 2012 about 30% of prescriptions by volume should be for generics. Japan is not 1-2 year story for us, it is 10 years and right now there is no point in looking at any number because in the next two years we are not getting any upside apart from the supply that we will make for the products that we already have. The real story for Ranbaxy is from 2012 and that should be good,” Atul Sobti, CEO, Ranbaxy told DNA.

      The company is looking to set up a dedicated manufacturing capacity in India, likely at its Mohali special economic zone, in the next 6-9 months to serve the Japanese market.

      Several synergy projects with Daiichi Sankyo, Ranbaxy’s parent firm, are under various stages of execution. Daiichi has formed a new company, Daiichi Sankyo Espha, to market generic drugs and Ranbaxy will have an opportunity to develop, manufacture and supply products to the new firm, for the Japanese market.

      “Our biggest investment in Japan would in development, let’s say hypothetically 8-10 products a year, but we can not commit anything right now, as I said it is a long-term play for us, Sobti said.

      Meanwhile, the company said it is in the final stages for the resolution of issues with the US FDA and department of justice for manufacturing facilities.

      “Broadly we are moving to resolution on department of justice and FDA. On FDA side, we have three open items, one is the Dewas facility for which we have asked for a re-inspection and we hope something would come out in the short term, for the Gloversville, US, facility we have had a meeting with the FDA and final reply will be out soon from us. And the longer open item has to do with Paonta Sahib on which corrective action is underway as approved by FDA,” Sobti said.

      The US department of justice has not yet filed any formal charges against the company but has asked for information regarding its business operations.

      May 24, 2010


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