• DECEMBER 12, 2001

Ranbaxy: Exports cross target

Ranbaxy has announced that it’s two wholly owned subsidiary in the US viz, Ohm Laboratories and Ranbaxy Pharmaceuticals Inc, have already achieved sales in excess of US $ 100 m. This would represent a remarkable growth of more than 65% from the US markets.

Cumulatively both the subsidiaries are likely to close the year (Dec’01) with revenues in the range of US $ 105-110 m. It is also for the first time that Ranbaxy’s international operations on a cumulative basis would turn profitable. The revenue mix of the company would tilt heavily in favour of exports. Exports are expected to contribute around 63% of the company’s revenues in the current year as compared to 48% last year.

This outstanding performance seems to be fuelled by generic launch of Ibuprofen (combination) and Lorazepam in September’01. The Ibuprofen combination was the first successful Para IV approval from Ranbaxy’s stable. On the other hand Lorazepam is an anti-anxiety drug with market size close to US $ 400 m.

Other geographies, where Ranbaxy has a direct presence are also logging impressive numbers. With this, the company should be able to complete the current financial year in excess of its target of US $ 600 m in global revenues. An expanding product basket, mature ANDA filings and further penetration in large pharma markets could ensure sustainable growth for Ranbaxy, going forward.

Unlike other pharma companies, Ranbaxy has not restricted itself to the US markets and has positioned itself as an integrated player in the export markets. Again unlike others, Ranbaxy has invested huge sums in creating a direct presence in 25 countries across the globe through various subsidiaries. Apart from US, the company has identified UK, Brazil, China and Germany as its core markets and is working towards penetrating these markets.

We are marginally upgrading our sales target for Ranbaxy in view of this remarkable performance. At the current market price of Rs 757, the stock trades at 26x expected earnings for FY02 (Year ending Dec’01).

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