Ranbaxy Laboratories, which is likely to merge with Sun Pharmaceutical in the current year, has registered strong financial performance during the second quarter ended September 2014 due to exclusivity sales of Valsartan in the US and higher growth in Western Europe and India. It has posted consolidated net profit of Rs. 478 crore as against a net loss of Rs. 454 crore in the corresponding quarter of last year. Its consolidated net sales also moved up by 17 per cent to Rs. 3,218 crore from Rs. 2,750 crore. EPS worked out to Rs. 11.27 as against negative Rs. 10.74.
After announcement of strong financial results, Ranabxy scrip moved up by over 6 per cent to Rs. 635 on BSE in the afternoon session.
Arun Sawhney, chief executive officer, and managing director, said, “During the quarter, growth in base business was driven by India and Western Europe. In the US, we successfully launched Valsartan with 180 days exclusivity. Our focus continues to be on creating brands and providing differentiated products as future growth drivers.”
The company launched Valsartan 40 mg, 80 mg, 160 mg and 320 mg tablets on an exclusive basis on July 7, 2014 in US for the treatment of high blood pressure and heart failure. Its Indian business recorded 12 per cent growth in line with the Indian pharma market growth and it expects to continue the momentum in the months ahead. Its market share for Absorica, isotretenoin NDA in the USA was above 20 per cent.
Ranabxy signed a licencing agreement with Cipher Pharmaceuticals Inc. to exclusively market, sell and distribute Cipher's isotretinoin capsules in Brazil during July 2014. Further it launched Absoricia capsules into the US healthcare market.
The sales of branded and OTC category contributed Rs. 1,391 crore accounting for 43 per cent of total sales during the quarter under review and the sales of generic & other category reached at Rs 1,827 crore. Its sales in North America touched to Rs. 1,415 crore. Its domestic sales in India increased by 12 per cent to Rs. 644 crore. India region witnessed growth of its prime segments within the branded business. Its sales in East Europe & CIS reached at Rs. 405 crore and that in West Europe improved by 17 per cent to Rs. 233 crore. The sales growth in West Europe was driven by strong performance in UK, Germany, Spain and North Europe.
Ranbaxy's sales in Africa and Middle East remained at Rs. 237 crore and that in Asia Pacific and LATAM moved up to Rs. 187 crore. Its API business reached at Rs. 94 crore primarily impacted by supply issues at Toansa and Dewas.
For the first half ended September 2014, Ranbaxy's consolidated net sales improved by 4.8 per cent to Rs. 5,590 crore from Rs. 5,334 crore in the similar period of last year. It registered net profit of Rs. 292 crore as against a net loss of Rs. 978 crore. As against the equity capital of Rs. 212 crore, its reserves & surplus amounted to Rs. 3,433 crore as at the end of September 2014.
The company has settled the litigation concerning its participation in the Texas Medicaid Programme. Under the settlement agreement, it will make payments to the State of Texas in a series of tranches through August 2015. It has settled the matter to avoid any further distraction and uncertainty of continued litigation.