INTRODUCTION Ranbaxy Laboratories Limited (Ranbaxy) is a research based international pharmaceutical company serving customers in over 150 countries. The company was incorporated in 1961 and it went public in 1973.In 1998 Ranbaxy entered the United States which is the largest pharmaceutical market. In 2008 Daiichi Sankyo a leading pharmaceutical innovator, headquartered in Tokyo, Japan acquired a controlling share in the company. Ranbaxy produces a wide range of quality, affordable generic medicines across many countries. It has ground operations in 43 countries and 16 manufacturing units spread across 8 countries. Its market presence spreads …show more content…
The company had to pay a heavy fine of $500 million to the US Department of Justice.
Ranbaxy now stands below its major competitors like Dr. Reddy’s and CSLA. On loosing it credibility and having most of its manufacturing units under the FDA scanner, has made it difficult for the company to revive its past glory. Its revenue has fallen and so has its BSE.
Rishikesha T Krishna (2013): The fall of Ranbaxy is painful, even though it is, strictly speaking, no longer an “Indian” company (controlling interest is now owned by Japanese drug company Daiichi Sankyo). While Rajat Gupta and Phaneesh Murthy got into trouble because of their own personal foibles, Ranbaxy’s problems point to systemic failures that went uncorrected by a predominantly Indian management. Interviews with the whistleblower, whose report led to the levy of a $500 million penalty on the company, point to large-scale fudging of data and the absence of oversight mechanisms to correct such excesses. Instead, according to these reports, the then senior management of the company failed to take corrective action, even when evidence of such practices surfaced.
The fall of Ranbaxy shows that even the best can be corrupted. Though this may lead to the production of better generic drugs and safer medicines, it will always leave a bitter taste in the mouths of