Zenotech workers strike over dues

The change in management of the Hyderabad-based pharma company Zenotech has taken an ugly turn with the employees of the company boycotting work for the second consecutive day.
The operations including production of some key drugs at Zenotech has been grounded with about 120 employees of the company staying away from the work demanding payment of salaries and seeking an assurance from Ranbaxy on the future of Zenotech.

Zenotech currently has about 13 products in its portfolio including three biotech products and 10 oncology products. As per the agreement between Zenotech and Ranbaxy, it is Ranbaxy that takes the products to the market.

“The management of the company led by Ranbaxy has not paid our salaries. We are also worried about our future since there has not been any assurance from Ranbaxy on the roadmap for the company,” a Zenotech employee told DNA Money.
The employees said that the turnover of the company has been dwindling ever since Ranbaxy took over. While Zenotech had `13 crore revenues in 2007, it is said to be at about `6.5 crore for the 12 months ended March 2011.

The employees have also written a letter to the Ranbaxy management questioning the pharma major’s disinterest in marketing Zenotech’s products. “Apart from the salaries that are specific to the employees, there has also been no interest in taking the company forward. There are questions about development of ANDAs, development of filgrastim for the European market and the future of Rituximab clinical trials that are in suspended animation for the last two years,” a senior employee of the company said. Jayaram Chigurupati, the founder of the company, when contacted, said, “I am also one of them. Still we are trying for a resolution to the issue at the earliest.”