Ranbaxy beats estimates on higher sales, forex gain

Ranbaxy Laboratories Ltd, India's top drugmaker by sales, beat estimates with a Rs 7.5 billion quarterly net profit on stronger demand for its generic drugs in its key North American market while foreign exchange gains ballooned.

Demand for cheaper generic medicines from Ranbaxy and its local rivals such as Dr. Reddy's Laboratories Ltd, Cipla Ltd and Sun Pharmaceutical Industries Ltd is booming as developed nations battle rising healthcare costs.

Indian drugmakers, which, on average, draw half of their sales from the United States, account for about a third of applications to sell generic drugs in that country.

They, however, face intense competition, as well as an increase in lawsuits from rival drugmakers and a stricter U.S. regulatory environment.

Ranbaxy, controlled by Japan's Daiichi Sankyo Co, said on Thursday sales grew to 26.5 billion rupees in the fiscal third quarter ended September from 20.2 billion rupees a year earlier. The company gained 3.93 billion rupees in forex gains.

Analysts, on average, estimated the net profit at 2.92 billion rupees on net sales of 26.91 billion rupees, according to Thomson Reuters I/B/E/S. Ranbaxy had posted a loss of 4.65 billion in the year-ago quarter.

Last year it launched the first copy-cat version of Lipitor, the world's top-selling drug owned by Pfizer Inc, in the United States and enjoyed exclusive marketing rights with Watson Pharmaceuticals Inc for six months that ended in May 2012.

It also launched generic Actos, a diabetes drug by Takeda Pharmaceutical Co, in August and shares marketing exclusivity with Mylan Inc in the United States.

Sales in North America jumped 60 percent to 9.2 billion rupees during July-September while formulations business in India grew 13 percent to 5.83 billion rupees, it said.

Shares in Ranbaxy, valued about $4.2 billion, were up down 0.6 percent at 547.3 rupees by 2:17 p.m. The stock is up nearly 35 percent this year compared with a near 20 percent rise in Mumbai market.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Customer orientation needs human touch

In the mid-1990s, while researching drivers of corporate excellence, we ...

Kuruvilla Pandikattu SJ

Can religion help us protect our planet?

Though not factually true, in popular imagination, the relationship between ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture