Ranbaxy may exit small global markets: Indicating a shift in its business strategy, drugmaker Ranbaxy could withdraw from some global markets in the near future, while consolidating in others. According to sources, the company has identified smaller markets such as Peru, which do not contribute significantly to profits, where it might shut shop in the near term. Besides, there are also directions from top management to avoid participating in domestic as well as international tenders with less than five per cent margin. A source in the know of the developments told Business Standard: “This is part of the ongoing cost rationalisation process within the company. There is pressure to minimise cost and increase profitability. So, it does not make sense for the company to deploy staff or bear a cost in a region where it does not see relative future growth.” Ranbaxy confirmed it had identified select therapeutic areas and regions, which would drive its future growth. However, it did not respond to questions related to withdrawing from smaller markets such as Peru.
Posted on: Mon, 26 Aug 2013 05:13:04 +0000
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