A day after the US Food and Drug Administration (US FDA) imposed a ban on Ranbaxy?Laboratories Ltd?s drugs the company?hired the former New York City mayor Rudolph Giuliani as an advisor to tide over the crisis.?The US FDA inflicted a ban on more than 30 generic drugs from entering the United States because of ongoing procedural violations in Ranbaxy?s manufacturing facilities at?Dewas in Madhya Pradesh and Paonta Sahib in Himachal Pradesh. The US FDA also ruled out any further new approval of drugs from the two suspect factories.
Ranbaxy has expressed its disappointment over the move and said in a response to the US FDA move that it is committed to a swift resolution to address these issues and the company will continue to supply safe and effective pharmaceuticals to the international markets. The problems related to the two locations first surfaced in 2006.
In a statement, Ranbaxy said that it had retained the services of Giuliani and his consulting firm Giuliani Partners for advice and a review of compliance issues related to the agency?s action. Giuliani had sought the Republican presidential nomination before dropping out as the number three candidate. He, later supported Johm McCain?s candidature.
Meanwhile, according to Bloomberg, Mylan Inc, the largest??generic drugmaker in US, jumped?6.2% (67 cents) at $11.52 at 12:40 pm in the New York Stock Exchange ??after an analyst said the company could benefit from the regulatory woes of Ranbaxy Laboratories Ltd. Ranbaxy competes with Mylan selling a generic version of Roche?s acne pill, Accutane. Mylan?s drug has $25 million to $30 million in annual sales and “Ranbaxy?s removal could easily double that,?? said Ken Cacciatore, a Cowen & Co analyst in New York, in a note to clients. Mylan and Ranbaxy also compete for generic sales of Bristol- Myers Squibb?s cholesterol medicine Pravachol and Merck & Co?s Zocor, though Ranbaxy?s US share for those drugs is only about 5%, Cacciatore said. Both Ranbaxy drugs were among those whose sales were blocked by the FDA.