• FEBRUARY 26, 2002

Ranbaxy: Leveraging on marketing setup

Ranbaxy has started leveraging on its direct marketing presence in 25 countries across the globe. Yesterday, the company announced entering into an agreement with Penwest, U.S granting Ranbaxy, exclusive marketing rights to market Nifedipine XL, a cardiovascular drug.

Ranbaxy would be marketing this drug on behalf of Penwest, USA in key Asian markets such as China, Malaysia, Singapore, Thailand and Sri Lanka. Cumulatively, all these regions have a market close to US$ 50 m for this drug. Though the ultimate revenue occurring to the company at this point of time may be small, it opens new vistas, as it would provide more such opportunities to leverage its marketing set up. Further, it will improve product offerings of the company in its key focus markets besides the US. An improving product basket would improve the bargaining power of the company. UK, Germany, Brazil and China are the other core markets identified by the company.

The speed at which Ranbaxy is cracking export markets is encouraging. The US subsidiaries of the company achieved sales in excess of US$ 113 m. It may be recalled that the company recently got approval for Cefuroxime Axetil in the US markets with expected sales revenues of around US$ 60m. Further, with aggressive product launches, Ranbaxy’s US subsidiaries are likely to cross revenues of US$ 200m in the current financial year.

Considering that most of the identified markets are logging healthy growth rates, the company should continue to log 16-18% CAGR growth over 2005 in exports. The company seems to be ahead of its target in achieving global sales in excess of US$ 1 bn by 2005.

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