Drug maker Ranbaxy Laboratories is likely to sell off Biovel, a Bangalore-based vaccine manufacturing company which it had acquired in 2010.
Although Ranbaxy made the acquisition to foray into the vaccine business, it failed to roll out any product in the segment for the past two years. The company recently booked impairment losses on account of Biovel.
During the July-September quarter, Ranbaxy's depreciation, amortisation and impairment were higher at Rs 133.4 crore, as against Rs 81.5 crore during the corresponding quarter the previous year. This was mainly on account of an exceptional impairment loss of Rs 48.5 crore registered by the company during the quarter with regard to the vaccine plant in Bangalore, the company management had told investors after announcing its July-September earnings in October. The company management had said the facility "is being impaired owing to prevalent market conditions".
Ranbaxy refused to comment on this. Biovel was working on biotechnology products in segments such as cardiology, endocrinology, oncology, dermatology and gynaecology, and also making typhoid and influenza vaccines in 2010, when it was acquired by Ranbaxy. The buyout was expected to mark the entry of Ranbaxy, owned by Japan's Daiichi Sankyo, into vaccines as well as biopharmaceuticals.
Read the full article on Business Standard
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