Ranbaxy beats estimates on higher sales, forex gain

MUMBAI Thu Nov 8, 2012 3:36pm IST

A pharmacist gives free medicine provided by the government, to a patient inside a government hospital in Kolkata July 3, 2012. REUTERS/Rupak De Chowdhuri/Files

A pharmacist gives free medicine provided by the government, to a patient inside a government hospital in Kolkata July 3, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   
Inside the Peshawar school

Inside the Peshawar school

The aftermath inside the Pakistan school where at least 132 students and nine staff members were killed by Taliban gunmen.  Pictures 

MUMBAI (Reuters) - Ranbaxy Laboratories Ltd(RANB.NS), India's top drugmaker by sales, beat estimates with a 7.5 billion rupee 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 (REDY.NS), Cipla Ltd (CIPL.NS) and Sun Pharmaceutical Industries Ltd (SUN.NS) 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 (4568.T), 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 (PFE.N), in the United States and enjoyed exclusive marketing rights with Watson Pharmaceuticals Inc WPI.N for six months that ended in May 2012.

It also launched generic Actos, a diabetes drug by Takeda Pharmaceutical Co (4502.T), in August and shares marketing exclusivity with Mylan Inc (MYL.O) 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. (Reporting by Kaustubh Kulkarni; Editing by Matt Driskill)

FILED UNDER:

Economy

REUTERS SHOWCASE

Global Economy

Global Economy

EU leaders agree investment package to boost economy.  Full Article 

Oil Prices

Oil Prices

Brent steady below $60, heads for 4th weekly decline as oversupply persists.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of economy in 2013 by 3.4 percent.  Full Article 

Reuters Exclusive

Reuters Exclusive

Google aiming to go straight into car with next Android – sources.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage