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Even as drug maker Ranbaxy Laboratories is struggling to resolve manufacturing related issues with the US drug regulator and resume supplies to the market from its Indian facilities, senior officials of the company along with Joji Nakayama, Chief Executive of its Japanese parent Daiichi Sankyo, met commerce minister Anand Sharma on Thursday afternoon. The officials discussed various issues including concerns raised by the US Food and Drug Administration and Daiichi Sankyo’s India strategy, a commerce ministry official said.
According to the official, four senior officials, on behalf of Ranbaxy, attended the meeting which went on for around 15 minutes. Apart from Nakayama, the meeting was attended by Ranbaxy Chairman Tsutomu Une and CEO & Managing Director Arun Sawhney. Ranbaxy’s head of investor relations Umang Khurana and DV Prasad, joint secretary in Department of Industrial Policy and Promotion (DIPP) were also present in the meeting, the official said.
When contacted, a Ranbaxy spokesperson confirmed the meeting but said it was merely a “courtesy call” by Nakayama who was in India for a few days.
However, the meeting assumes significance as Ranbaxy is continuing to face trouble in the US – the world’s largest pharmaceutical market and all three of its Indian facilities at Dewas, Paonta Sahib and the new Mohali facility are currently barred from supplying any product to the US. This has been a major set back for Ranbaxy as the US was a major contributor to the company’s consolidated revenues. Moreover, earlier this year the company also had to pay a fine of $500 million to the US authorities after it pleaded guilty of fraudulent activities to gain approvals.
The meeting also comes in the wake of India-US diplomatic row following the arrest and strip-search of India’s deputy consul general Devyani Khobragade in New York. The matter has escalated after India ordered reprisals against the US.
Experts see Ranbaxy’s meeting with Sharma as a possible advocacy move. “Ranbaxy’s issues have been long pending now and there is no clear sign of resolution. It is possible that the company is now looking for government support to resolve the matter,” an industry analyst said.
According to the commerce ministry official, Nakayama assured Sharma that Daiichi Sankyo is helping Ranbaxy take required corrective measures and put in place best manufacturing practices. Daiichi officials also discussed their India plans during the meeting.
