ManagementDaiichi FY'09 loss at $3.45 bn on fall in Ranbaxy scrips
Japanese drug maker Daiichi Sankyo today reported a loss of $3.45 billion during the financial year 2008-09, and said it was on account of a steep fall in share prices of Ranbaxy, which it acquired last year.
The company said it has booked "extraordinary losses due to one-time write-down of goodwill" worth $3.59 billion on Ranbaxy shares, which have dipped more than two-thirds since the deal was signed in June last year.
The US FDA had imposed a ban in September last year on the import of 30 drugs manufactured by Ranbaxy at two of its plants located in India alleging violation of Good Manufacturing Practice. In February 2009, FDA invoked Application Integrity Policy (AIP) against the Paonta Sahib facility on charges of falsifying data and test records.
An AIP is invoked on concerns over the integrity and reliability of data required to be submitted for drug approvals. Then, the facility involved has to re-apply for the approval or withdraw the application.
"These regulatory actions could exert a significantly adverse impact on the group," Daiichi Sankyo said, and added that it has established a joint taskforce of Ranbaxy management and industry experts to resolve the issues.