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E-mail ID will not be published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

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

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 Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture