Ranbaxy to launch 30 drugs in US

New Delhi, Nov 22 | Updated: Nov 23 2005, 07:04am hrs
Faced with falling sales and low profitability, Ranbaxy Laboratories Ltd is launching 30 new products in the US market over the next two years, according to a company presentation made to investors and analysts recently.

The current market value of these drugs due for launch in 2006 and 2007 is estimated at $27 billion. Ranbaxy currently sells 20 drugs in the US, which earned Rs 335 crore out of its last quarter revenues of Rs 1,300 crore.

Ranbaxy, which has taken a bottomline hit for the past four quarters has given a guidance of 18% revenue growth and 16% EBIDTA growth for 2006. In the July-September quarter, the company reported a 91% decline in net profits, its highest quarterly dip in a year, while revenues were down 3% due to fierce competition in the US generics market. Analysts estimate single-digit revenue and profit growth for Ranbaxy in 2005. However, Ranbaxy said its strategic direction remained unchanged.

While it has 47 products (current market value of $39 billion) pending approval in the US market, 19 drugs worth $22.6 billion have first to file status (known as para IV filing which could give it a 6-month exclusivity period).

Among the seven products from the first to file pipeline which are to be launched are Pravastatin, Siimvastatin and Modanifil which have a combined current market size of $1.2 billion, the company said. While Pravastatin, which is facing no litigation, is expected to hit the market by April next year, the latter two drugs, could be launched in June 2006 depending on a favourable verdict on litigation.

The company also has nine NCEs (new chemical entities) in various stages of development with two molecules undergoing clinical trials.