Financial Daily from THE HINDU group of publications
Friday, Jan 11, 2002
Ranbaxy bullish on US subsidiaries
P.T. Jyothi Datta
NEW DELHI, Jan. 10
RANBAXY Laboratories Ltd (RLL) is optimistic that its robust pipeline of products would help its US subsidiaries clock a healthy sales growth of 30 to 35 per cent in this calendar year (January-December 2002).
Mr Bimal K. Raizada, RLL's Senior Vice-President, told Business Line, that its two wholly-owned US subsidiaries Ranbaxy Pharmaceuticals Inc (RPI) and Ohm Laboratories Inc would see a robust growth of about 30 to 35 per cent. And this, even as the US market was growing at about 8 per cent, he said.
His optimism was based on the spate of US FDA approvals received by RLL's US subsidiaries, particularly in the last six weeks. ``These approvals are for new and niche products, and competition, if any, is restricted."
The positive long-term outlook for the US market also stems from an earlier statement from Ranbaxy's CEO and Managing Director, Mr D.S. Brar, indicating that the company, currently in the generics segment, would get into branded pharmaceuticals. The ground-work is being done to prepare for this foray in 2003, according to company sources.
RPI and Ohm Laboratories Inc had achieved a milestone of sorts by achieving a combined sales $112 million for the year ended January-December 2001, a topline growth of 73 per cent.
Currently, these subsidiaries contribute about 17 per cent of Ranbaxy's global revenues and according to analysts, this development was significant given that the US market accounted for half the global pharma sales.
RLL's exports also beat the ``sluggish" trend by achieving a sales of Rs 1,030 crore, marking a growth of 26 per cent, he pointed out. He expected the company's exports to continue to grow over 20 per cent. And, while the US market would bolster this growth, the basket of 94 countries where it is present would also contribute.
The anti-AIDS market also opened up an opportunity for exports to markets in Nigeria and other parts of Africa.
Only in December last year, the Nigerian Government had signed an agreement with Ranbaxy Nigeria Ltd (RNL), a wholly-owned subsidiary of RLL, for the supply of anti-retroviral (ARV) drugs.
This is also expected to take off this year, he said.
The agreement is valued at $1.75 million and covers the supply of ARVs Lamivudine, Stavudine and Nevirapine.
Among the most affected markets in Africa, Nigeria ranks second in terms of the number of HIV infected adults, with a prevalence rate of 5.4 per cent of the population.
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