Ranbaxy To Infuse $20Mn In Terapia

Mumbai: Drug major Ranbaxy Laboratories is infusing more than $20 million (over Rs 83 crore) in its Romanian subsidiary, Terapia Ranbaxy. The move is a part of the company''s strategy to make the subsidiary its hub for Europe and Commonwealth of Independent States countries. A substantial portion of the investment is to enhance the manufacturing capabilities of Terapia''s manufacturing plant in Romania, for reorganising and revamping the company and to enhance research and development capabilities. Terapia SA, an 86-year-old company, was bought by Ranbaxy for $324 million (Rs 1,347 crore) in June, last year. The combined operations of Terapia and Ranbaxy established the largest Romanian generics company, with more than 1,200 employees, of which 350 form the largest professional field force in the Romanian pharmaceutical market.
Terapia has a manufacturing plant in Romania and now Ranbaxy is in the process of upgrading this plant. The Rs 6,069 crore Ranbaxy, witnessed a 4 per cent decline in growth in Europe last year, posting $194 million (Rs 896 crore) sales for the year ended December 31, 2006 owing to intense generic competition in the UK and healthcare reforms in Germany and France. Terapia Ranbaxy has manufacturing and import authorisation as per European Union norms, entitling the company to batch test and release products manufactured outside the European Union.