US officials raids Ranbaxy’s US Headquarters

US authorities conducted a raid on the New Jersey premises of the Indian pharmaceutical company for unspecified reasons. Share price dropped 5% on Thursday in the backdrop of US federal officials conducting a search on the premises.

This is not the first time Ranbaxy has run into trouble with the US FDA. Earlier, in June 2006, the administration had raised questions related to its dosage forms plant at Paonta Sahib, after a site inspection. US authorities conducted a raid on the New Jersey premises of the Indian pharmaceutical company for unspecified reasons. Share price dropped 5% on Thursday in the backdrop of US federal officials conducting a search on the premises.

This is not the first time Ranbaxy has run into trouble with the US FDA. Earlier, in June 2006, the administration had raised questions related to its dosage forms plant at Paonta Sahib, after a site inspection. The company is still waiting "re-approval" from the FDA after a team visited the facility in January this year.

Ranbaxy entered the US market in 1995; the US is now the largest market for the company.

The senior management of Ranbaxy's US operations has witnessed some churn over the last one year or so. The long time head of Ranbaxy's US operations and chairman of Ranbaxy, Dipak Chattaraj returned to India last year. Atul Malhotra, who took charge of the US operations in January 2006 was recalled in the middle of the year. At present, Venkat Krishnan is the VP and regional director, North America.

Ranbaxy said that this action has come as a surprise. The company is not aware of any wrongdoing. It is co-operating fully with the officials.

Recently (Feb 8th) Ranbaxy received final approval from the U.S. FDA to manufacture and market Sertraline Hydrochloride Tablets (Zoloft®  generic)