Ranbaxy Q1 net profit plunges 90% to Rs 126 cr

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Drug major Ranbaxy Laboratories today reported a 89.91 per cent decline in its consolidated net profit at Rs 125.75 crore for the first quarter ended March 31, 2013, mainly on account of absence of contribution from exclusivities.

The company had exclusive rights to a generic version of cholesterol lowering drug Lipitor in the US during the corresponding quarter of previous fiscal.

The company had posted a net profit of Rs 1,246.76 crore for the quarter ended March 31, 2012, Ranbaxy Laboratories Ltd said in a statement.

Net sales of the company declined to Rs 2,439.82 crore for the January-March quarter, compared to Rs 3,708.97 crore in the same period of 2012.

“Lower sales in comparison to the corresponding quarter of previous fiscal were due to large contribution to sales from exclusivity opportunities in that quarter,” it added.

Commenting on the company’s performance, Ranbaxy CEO and MD Arun Sawhney said: “India and key emerging markets of East Europe + CIS and Africa + Middle East returned strong growth.

“The focus on differentiated products gained momentum during the quarter as we improved our market share in Absorica and received the rights to market Desevenlafaxine in USA.”

The company also continued to work towards optimising overhead and other expenses, he added.

During the quarter the company capitalised on product opportunities and launched Desvenlafaxine, a new drug application (NDA) for Pristiq. It also gained market share in Absorica, Ranbaxy said.

“The company also gained over 50 per cent of the market share in Cevimeline hydrochloride 30 mg capsules in the US, the authorised generic product of Daiichi Sankyo, marketed under the brand name Evoxac,” it added.

Under the hybrid business model, Ranbaxy and Daiichi Sankyo Co (DS) worked on the collaboration of their businesses in Brazil to expand the business of both the companies, Ranbaxy said.

On the regulatory front, implementation of the Consent Decree, signed in Jan 2012, progressed as per the plan, it added.

The company has also resumed supplies of Atorvastatin, in the US market, it said.

In global sales for the quarter, the branded and over the counter (OTC) category contributed Rs 1,223.8 crore accounting for 50 per cent of total sales. Generics, including API category, recorded Rs 1,216 crore of sales, Ranbaxy said.

During the quarter under consideration, the company’s sales in India grew by 11 per cent at Rs 542.7 crore, while in North America it stood at Rs 689.2 crore.

Shares of Ranbaxy were trading at Rs 445.80 on the BSE in late afternoon trade, down 2.34 per cent from its previous close.