LITERATURE REVIEW OF RANBAXY LABORATORIES LTD -
Ranbaxy Laboratories Ltd was established in India in 1961 and rapidly emerged as a leading global pharmaceutical company. Over the years, it developed a strong presence in the Indian market and a significant global footprint, with operations in more than 50 countries. The company had a diverse product portfolio that included both branded and generic drugs, and it was known for its focus on innovation and research.
However, in 2008, Ranbaxy faced serious legal and regulatory challenges, which cast shadows over its otherwise impressive reputation. It was charged with serious violations by the Food and Drug Administration (FDA) in the United States, which led to import bans and recall of several of its products from the market. The charges included falsification of data and submission of misleading information to the FDA, among others.
These challenges led to a sharp decline in the company's financial performance and market value, and in 2014, it was sold to Sun Pharmaceuticals, another major Indian pharmaceutical company. The sale resulted in a significant loss for the founders of Ranbaxy, and was also seen as a blow to India's pharma industry's global reputation.
Several studies have analyzed the impact of the Ranbaxy case on the Indian pharmaceutical industry and the country's image in the global market. While some authors argue that the incident was a one-off event, pointing out that India continues to be a major producer of generic drugs, others suggest that it highlights the need for greater regulatory oversight and compliance in the industry.
Additionally, researchers have also examined the implications of the case for Ranbaxy's stakeholders, such as investors, employees, and consumers. Some authors suggest that the legal and regulatory challenges faced by the company were a result of a combination of its growth ambitions, lack of attention to compliance, and inadequate regulatory oversight. Others argue that the company's challenges exposed broader issues in the pharmaceutical industry, including the perceived tension between innovation and affordability.
In conclusion, the Ranbaxy case remains a significant event in the history of the Indian pharmaceutical industry, and has had significant implications for the company's stakeholders. While the incident has raised concerns over regulatory compliance and oversight in the industry, it has also highlighted the need for greater transparency and accountability on the part of pharmaceutical companies, especially those with global operations.