Ranbaxy extends branded Diovan's life
Four Ranbaxy sites are on the FDA's list of black sites, and while this may seem like bad news for the Sun Pharma subsidiary, the division's manufacturing slip-ups have been to Novartis's benefit: Bloomberg reports that because of the way generic licenses are granted, license-holder Ranbaxy's paralysis has kept generic Diovan off the market, which means Novartis's branded Diovan remains king of the pharmacy.
As Bloomberg explains, the law is that the generics license is Ranbaxy's and competitors can't join the blood pressure medication fray until its generic has had six months in the market. Only thing is, the FDA has not approved the generic, which puts Ranbaxy's generic and therefore other manufacturer generics in limbo.
By Bloomberg's count, this delay translates into around $900 million in lost consumer savings.