UPDATE 1-India's Ranbaxy beats estimates on higher sales, forex gain

Thu Nov 8, 2012 3:31pm IST

Related Topics

Stocks

   

* Net profit 7.5 bln rupees vs estimate 2.92 bln rupees

* North America sales rise 60 pct, India up 13 pct

* Foreign exchange gains at 3.93 billion rupees

MUMBAI, Nov 8 (Reuters) - Ranbaxy Laboratories Ltd , India's top drugmaker by sales, beat estimates with a 7.5 billion rupee ($140 million) 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 0947 GMT. The stock is up nearly 35 percent this year compared with a near 20 percent rise in Mumbai market.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

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