It is understood that Daichii President and CEO George Nakayama, who met Commerce and Industry Minister Anand Sharma here, has given assurance about taking corrective measures.
"They (Daichii) are trying to make Mohali a model plant having the best Japanese quality practices. They will make the system better to make it fully compliant with American regulatory practices," said a source privy to the meeting.
Besides, Nakayama told the minister that the company would also bring in technical people from Japan so that there is knowledge transfer to India.
According to the source, Nakayama said the company "will continue to expand in India and provide help from technical side for quality issues". Daichii will also suggest ways to Ranbaxy to deal with US challenges, the source quoted Nakayama informing Sharma during the meeting.
On September 16, the US Food and Drug Administration issued an import alert on drugs produced by the company at its Mohali plant in Punjab for violation of current good manufacturing practices (GMPs). This was the company's third facility, after the Paonta Sahib (Himachal Pradesh) and Dewas (Madhya Pradesh) plants, to have been banned from exporting drugs to the US for violation of the GMP norms.
In May, Ranbaxy pleaded guilty to "felony charges" related to the manufacture and distribution of certain 'adulterated' drugs made at the Dewas and Paonta Sahib units and agreed to pay USD 500 million to US authorities as penalty.
Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan's third largest drug-maker bought a majority stake for Rs 22,000 crore.
Ranbaxy Labs stock price
On December 19, 2013, Ranbaxy Laboratories closed at Rs 450.75, up Rs 9.75, or 2.21 percent. The 52-week high of the share was Rs 525.00 and the 52-week low was Rs 253.95.
The latest book value of the company is Rs 45.34 per share. At current value, the price-to-book value of the company was 9.94.
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