Riding on increased sales at home and in the United States, the nation's largest pharmaceutical company, Ranbaxy Laboratories Ltd, reported a whopping 167 per cent jump in net profit on Thursday to Rs 185.9 crore in the fourth quarter which ended in December 2006, compared to Rs 69.5 crore in the corresponding period of the previous year.
Consolidated revenues rose 22 per cent to Rs 1707.7 crore from Rs 1,405 crore over the period.
For the year which ended on December 31, Ranbaxy's net profit grew 97 per cent at Rs 520.4 crore compared with Rs 264.2 crore in the previous fiscal. Consolidated revenues for the year stood at Rs 6,069.8 crore as against Rs 5,188 crore in 2005.
"This was an extremely good year with robust sales across the markets of the US, BRICs (Brazil, Russia, India, China), Africa, Latin America and the Asia-Pacific," said Ranbaxy's Managing Director Malvinder Singh. "Well monitored expenses helped the company post good growth in the quarter and the fiscal year 2006."
On the possible acquisition of Merck's generics business, Singh said the company was willing to bid but the process has not started as yet. "The bidding process is expected to start some time in February," he told Hindustan Times.
The company is well positioned to gain from opportunities emerging in the global generics space, Singh said.
In the domestic market, the company has increased its market share to five per cent during the year. The company hopes to register a growth of more than 15 per cent in the domestic market.
"The Indian market is expected to grow by 15 per cent and we are aiming to grow faster than that," the managing director said. Domestic sales in the latest quarter stood at Rs 273.2 crore ($61 million), up 10 per cent from a year ago, while annual sales grew 19 per cent at Rs 1,158 crore ($ 256 million).
Simvastatin, an anti-cholesterol drug, captured a 56 per cent market share in the US during 2006 with total sales in that country posting a 15 per cent growth at $380 million. The company filed 27 ANDAs (abbreviated new drug applications) in the US during 2006, taking its cumulative filings to 197. Ranbaxy expects to launch 10 to 15 new products in the US market this year.
Ranbaxy's global revenues grew by 17 per cent at $1.34 billion in the year. At $869 million, the combined sales in the North America and BRICs markets contributed as much as 65 per cent to the company's total sales.
However, its sales in Europe during the year dipped by four per cent at $194 million due to regulatory and pricing reforms in key markets including France and Germany. Fourth quarter sales also declined by six per cent in the quarter at $52 million.
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