BANGALORE: Sun Pharmaceuticals had acquired Ranbaxy, which has been developing medicines for over 150 countries. The company was working on three generic drugs, the Nexium, valcyte, and Novartis. The company faced regulatory troubles in America that helped other companies yield profit.

The company was ban from importing the drugs into America by the foods and drugs Administration, for violating manufacturing norms. This prevented them from selling their products, whereby giving way for other drug companies to enter the market despite the expiry of patent protection.

The company AstraZeneca profited hugely from this ban over Ranbaxy. AstraZeneca was able to sell the generic drug, Nexium. Though Ranbaxy had got manufacturing rights and won the fight over patent protection, it was not able to make sells due to the ban from the FDA. This drug had seen total sales of $3.6 billion world wide last and $2.6 billion was in the U.S.

The company is under suspension for producing substandard quality products. The FDA has issued and orders that Ranbaxy will not manufacture any pharmaceutical products until it has resolved the issues and complies with the standard required by the FDA.

"This development is clearly unacceptable and an appropriate management action will be taken upon completion of the internal investigation," Ranbaxy Chief Executive Officer and Managing Director Arun Sawhney said. The research team also said that a quick transfer of the key raw materials will see a revival of the company in different sites, if not the company will see duress in its shares for the next three quarters.

The company’s sales have reduced drastically and there was a great dip in the stock as well. The FDA has strongly voiced that they will not have substandard products be distributed among its U.S. citizens. Ranbaxy will hire a third party to investigate this internal issue and hope to earn the grace of FDA to start manufacturing and exporting again.

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