Priority is to achieve hybrid biz model, says Ranbaxy's new CEO

NEW DELHI: The change of guard at Ranbaxy with the appointment of Atul Sobti as CEO and MD will accelerate and implement the company's hybrid business model effectively and unlock value for the company as well as for its parent.
"Our priority is to implement Ranbaxy's business plans effectively and accelerate them in achieving our vision of a hybrid business model.The hybrid model will get the best from both the sidesfrom Daiichi ^ manufacturing, IP (intellectual property) and innovative capability, and from Ranbaxy, research and generics push," Sobti said.
The newly-appointed chairman Dr Tsutomu Une, who has been with Ranbaxy since December 2008 as a non-executive director, said there is no change in the concept of a Ranbaxy's hybrid business model and "the change will accelerate the growth of the company," after announcing the new management at a press conference on Sunday evening.
"We have a capable team to take the company forward on its next phase of growth," Sobti said, adding the first phase of integration between Ranbaxy and Daiichi has gone well and the next phase will begin soon. The generics push in Japan should accelerate, along with good integration in different geographies this year.
Sobti's appointment will be endorsed at the company's board meeting to be held on May 29 and "explained to company's shareholders at its annual general meeting on the same day." On Sunday, four directors including Malvinder and Sobti resigned, but with Sobti's re-appointment as MD and CEO, there are seven directors on the company's board.
He said that the transition was smooth with the outgoing chairman Malvinder Singh wishing him luck. Sobti was till now the company's chief operating officer and Malvinder's nominee on the company's board.
"We are working with the US Food and Drug Administration and have asked for a meeting from them after submitting our reply (corrective action plan)," he added, "we are on track to resolve the issue."
The firm also said there was no plan to delist Ranbaxy, and the focus now would be to get back to good profitable growth. "We will be able to wipe out our losses this quarter if the rupee strengthens," he said.