Ranbaxy reports surprise Q2 profit on robust sales

Written by fe Bureau | Mumbai | Updated: Oct 29 2014, 06:28am hrs
Ranbaxy Laboratories on Tuesday reported a surprise quarterly profit of R477.8 crore, surpassing analysts expectations on sales of cardiac drug, Valsartan, for which the company has marketing exclusivity in the US for 180 days. The company had posted a net loss of R454.16 crore a year earlier.

The company reported net sales of R3,218 crore, a jump of 17% y-o-y. Analysts polled by Bloomberg expected a net profit of R279.1 crore on sales of R2,985.5 crore.

... growth in base business was driven by India and Western Europe. In the US, we successfully launched Valsartan with a 180-day exclusivity. Our focus continues to be on creating brands and providing differentiated products as future growth drivers, said CEO & MD Arun Sawhney.

The company said on October 16 that it paid $39.75 million to Texas in the US to settle the litigation related exclusively to the manner in which (it) has historically reported pricing data to Texas Medicaid for certain of its drugs. Ranbaxy is still corresponding with the US department of justice on a separate civil investigative demand dated August 22.

Branded and over-the-counter drugs, which contributed to 43% of total sales, brought in R1,390.8 crore. Other generic therapies posted sales of R1,827.1 crore. North American sales stood at R1,415.3crore and the US contributed R1,354.8 crore. Domestic sales grew 12% y-o-y to R643.8 crore.