Ranbaxy Laboratories Ltd, a leading Indian Pharma giant, received major jolt during the third quarter ended September 2005 on account of continuous price deflation in its key market of the USA and substantial rise in R&D expenses. The company incurred a standalone net loss of Rs 10.77 crore as against a net profit of 141.30 crore in the corresponding period of last year. Its standalone net sales also declined 3.8 per cent to Rs 814.63 crore from Rs 847.08 crore.
Commenting on the financial performance, Dr Brian Tempest, CEO & managing director, said, “Inspite of the weak USA generic market picture, we are continuing to invest in the future product flow of Ranbaxy, through expanded R&D activities.”
The consolidated net profit for the quarter under review came down heavily to Rs 18.40 crore from Rs 200.1 crore in the corresponding period of last year. The consolidated sales moved down to Rs 1004 crore from Rs 1344 crore.
Ranbaxy’s consolidated net profit for the nine months period ended September 2005 nosedived to Rs 190.5 crore from Rs 586.5 crore in the corresponding nine months of last year, registering a fall of 67.6 per cent. The company’s sales lower by 3.1 per cent to Rs 3790 crore from Rs 3910 crore. The fall in profits put pressure on earnings per share which worked out to Rs 5.10 as against Rs 15.70 in the last period.
The company’s US operations recorded a turnover of US$ 76 million a declined of 25 per cent. The adverse business climate and continuing pricing pressures impacted margins in this critical market. For the nine months period, sales in US declined by 20 per cent to $ 238 million.
The cumulative ANDA filings in the US now stand at 154, with 43 pending approvals with US FDA. It filed 8 ANDAs and received approval for 15. Its total prescription growth in US market recorded a healthy increase of 26 per cent in Q3. Despite difficult market conditions, Ranbaxy strongly believes that the US generics market present attractive opportunities in the future and is gearing up to capitalize on them.
During the quarter ended September 2005, Ranbaxy made a foray into the Canadian healthcare market, becoming the first India-based pharmaceutical company with a ground presence and will engage in the sale and distribution of affordable medicines in the country.