Setting things right, not aware of DCGI probe: Ranbaxy

Moneycontrol Bureau

Ranbaxy Laboratories, which pleaded guilty to 'felony charges' for violating US Food and Drug Administration's manufacturing norms today agreed that the company had serious issues in the past and has now taken measures to set things right.

In defense of the firm, MD& CEO Arun Sawhney in an exclusive conversation with CNBC-TV18’s Archana Shukla said, "We have invested more than USD 300 million since 2009 to upgrade our facilities; making sure that good systems are in place; training people, hiring the best consultants in the world to build skill sets."

Sawhney, however, denied any knowlege of any probe by Indian drug regulator Drug Controller General of India. "I am not aware of any probe being ordered by local authorities on Ranbaxy," he said. "We are in constant dialogue with all stakeholders, including the government, and will share all details and information that we are asked for."

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According to several media reports after Ranbaxy pleaded guilty DGCI had a probe into its Paonta Sahib (Himachal Pradesh) and Dewas (Madhya Pradesh) plants and also on the company’s medicines available in the market.

Sawhney claimed that the despite the probe and fine of USD 500 million, US FDA has advised patients in the US to continue taking Ranbaxy drugs. He argued that the adulteration (in drug manufacturing process) was on account of data that was generated on delayed testing of stability samples.

It must be noted that a few weeks ago, a prominent hospital in Mumbai had advised against prescribing medicines from Ranbaxy as they were of poor quality.

Saying that the past misdeeds were behind the company, Sawhney said it’s a new Ranbaxy now. "None of the people present then in Ranbaxy are currently with the company. It is a different company now, all positions are newly filled, all critical division heads are new, Ranbaxy's board is newly constituted," he added.

Ranbaxy chief also pointed out that the consent decree, which the company had signed with the USFDA for adhering to cGMP practices, is progressing as expected. "We have not had a single lapse since we signed the Consent Decree in 2011."

Sawhney sounded confident about the company's future. "In 2013 we are performing as per our targets and remain firm on our guidance of Rs 120 billion. We have very aggressive growth plans for Ranbaxy in the US and India."

For CNBC-TV18 comments watch video.