Ranbaxy Laboratories has achieved better performance during the first quarter ended March 2007. The company's net profit has taken a quantum jump of 79 per cent and reached at Rs 128.70 crore from Rs 71.80 crore in the corresponding period of last year. It's consolidated sales improved by 23 per cent to Rs 1564.4 crore from Rs 1275.3 crore. Earnings per share on a fully diluted basis worked out to Rs 2.61 as against Rs 1.91 in the last period.
Commenting on the business results, Malvinder Mohan Singh, CEO and MD, said, "Robust growth across geographies driven by new product flow in most of our key markets has been the main theme this quarter. In particular, stellar performances in the Emerging Markets and the European Continent underpin the strong numbers, declared today. I expect this growth to continue and accelerate as we progress through the year".
For Q1, consolidated sales stood at USD 355 Mn, an increase of 24 per cent. Sales in the company's emerging market geographies were at US$ 192 mn, constituting 54 per cent to global sales and recording a robust growth of 53 per cent. The performance from the countries in the emerging markets is in line with the company's increasing focus to capitalize on the opportunities in these fast growing and profitable economies. This segment comprises amongst others, key countries of India, Romania, CIS, South Africa, Central & Eastern European nations, CIS and Latin America. The developed markets, primarily USA, Canada, countries in Western Europe and Japan recorded sales of $140 mn, a growth of 7 per cent. These markets comprise 39 per cent of global sales. The company's international business recorded sales of $ 281 mn, up 23 per cent and contributed 79 per cent to total sales.
Sales in North America were at $ 91 mn, recording an increase of 3 per cent. For the quarter, USA recorded sales of $ 86 Mn, at similar levels to the corresponding previous quarter. The company received approval for 4 ANDA's which included Zolpidem Tartrate tablets, 5 /10 mg, Sertraline Hydrochloride tablets 25/50/100/150/200 mg, Amoxicillin and Clavulanate Potassium Oral Suspension USP, 600 mg/ 5 ml and Valacyclovir tablets 500 mg/ 1g. The combined innovator market size for these products is in excess of USD 6 Bn.
The company continues to strengthen its US product pipeline and presently has 88 ANDA's pending approval with the US FDA. These products at an innovator market size are valued at USD 56 Bn and comprise a well-balanced mix of plain vanilla generics, niche and potential First to File products. The company believes that it has a First to File status on approximately 20 Para IV ANDA filings, with an innovator market size in excess of USD 25 Bn.
In Q1 2007, Europe (including Romania) registered sales of $ 93 mn, 78 per cent higher than the corresponding previous period. The improved performance was a result of robust sales growth in most key EU countries. Subsequent to Romania joining the EU effective January 1, 2007, it becomes the company's third largest market globally and the largest in Europe. Rest of Europe continued to exhibit buoyant growth led by the important markets of Spain, Italy and Poland.
The Asia Pacific and CIS region recorded combined sales of USD 115 Mn for the quarter, 32 per cent better than the previous year. The performance was a result of the improved performances from all geographies, with the CIS region and India maintaining its strong growth momentum.
The sales for the quarter were at $ 65 Mn, 26 per cent better than the corresponding previous period. In rupee terms, the India region sales grew by 24 per cent. The growth was led equally by Acute and Chronic businesses, both growing in excess of 20 per cent. During the quarter, the India business launched 18 new products. Restructuring of domestic operations in line with customer groups, coupled with high growth contribution from several new products introduced over the last year has fuelled the business growth for Ranbaxy in India.
Reinforcing the company's commitment in the NDDS segment, Ranbaxy launched 6 NDDS products in the last quarter. Two of these NDDS formulations have been launched in the Urology segment - Niftran 100mg Capsules (Nitrofurantoin modified release) developed using the Company's R&D capabilities, Eligard 22.5mg and 45mg (Leuprolide Depot), in-licensed from QLT Inc., USA.
Russia and the Ukraine belt recorded sales of USD 9 mn each with a growth of 71 per cent and 51 per cent respectively. Asia Pacific (excluding India) registered sales of $ 24 mn, an increase of 33 per cent over the previous period. The growth in the quarter was driven by an all round better performance from key markets such as the Middle East, Thailand, Malaysia, China and Japan.
During the Quarter, Ranbaxy filed 3 ANDAs with the US FDA and received approval for 4 taking the cumulative filings to date to 199 with 111 approvals. In the European Union (EU), the Company made 10 National filings in 9 Reference Member States (RMS) and received 9 approvals in 4 RMS.
In March 2007, Ranbaxy strengthened its R&D leadership with Dr. Himadri Sen joining the organization as President - R&D (Generics & NDDS). His appointment will add significant weight to the Research and Development effort currently underway at Ranbaxy.