Fall of Ranbaxy
RANBAXY’S FALL FROM GRACE
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 over 25 pharmaceutical markets. Ranbaxy first attracted the attention of global pharmaceutical industry by creating relatively simple process to produce complex new drug molecule invented by Eli Lilly. Thus leading to Lilly outsourcing the production of this drug to Ranbaxy and later forming a couple of joint ventures. Under the leadership of Parvinder Singh, it was one of the first Indian companies to accept TRIPS and focus on creation of new chemicals. Under him the company prospered and became one of the first Indian companies to become a MNC. Today Ranbaxy is no more remembered as a company that could put India on the global stage with its innovations but as a company immersed in controversies and guilty of fraud. The company once hailed as one of the top pharmaceutical companies in the world has lost its place at the top.
THE FALL OF RANBAXY Ranbaxy’s trouble began in 2004 when Dinesh Thakur and Rajinder Kumar, two Indian employees of Ranbaxy, blew the whistle on the company’s fraudulent drug test reports. Thakur was then forced to resign in 2005. He then went to the US and contacted the Food and Drug Administration (FDA), who later investigated
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 over 25 pharmaceutical markets. Ranbaxy first attracted the attention of global pharmaceutical industry by creating relatively simple process to produce complex new drug molecule invented by Eli Lilly. Thus leading to Lilly outsourcing the production of this drug to Ranbaxy and later forming a couple of joint ventures. Under the leadership of Parvinder Singh, it was one of the first Indian companies to accept TRIPS and focus on creation of new chemicals. Under him the company prospered and became one of the first Indian companies to become a MNC. Today Ranbaxy is no more remembered as a company that could put India on the global stage with its innovations but as a company immersed in controversies and guilty of fraud. The company once hailed as one of the top pharmaceutical companies in the world has lost its place at the top.
THE FALL OF RANBAXY Ranbaxy’s trouble began in 2004 when Dinesh Thakur and Rajinder Kumar, two Indian employees of Ranbaxy, blew the whistle on the company’s fraudulent drug test reports. Thakur was then forced to resign in 2005. He then went to the US and contacted the Food and Drug Administration (FDA), who later investigated
References: Das, Soma. (2013, July 6). 400 maybe shown the door as Ranbaxy turns a house of trouble. The Economic Times, pp. A1, A4. Ranbaxy. (2013). Retrieved from http://en.wikipedia.org/wiki/Ranbaxy Ranbaxy(2013). Retrieved from http://www.ranbaxy.com/ Jyothidatta. (2013, May 14). Ranbaxy issue, a wake-up call for India. Business Standard. Retrieved from http://www.thehindubusinessline.com/companies/ranbaxy-issue-a-wakeup-call-for-india/article4715034.ece?ref=relatedNews Rishikesh T Krishnan. (2013, June 14). Ranbaxy: Fall of an icon. Business Standard. Retrieved from http://www.thehindubusinessline.com/features/weekend-life/ranbaxy-fall-of-an-icon/article4784955.ece