Ranbaxy to bid for US company's business

Ranbaxy Laboratories, the largest Indian drug maker, is planning to bid for the branded pharmaceuticals business of the US-based Andrx Corporation.

A Ranbaxy spokesperson said: "It is our stated strategy that the company is looking at inorganic growth opportunities to expand operations in the US. We are evaluating the option of buying brands or any business that is a strategic fit to our existing line of business." He refused to comment further on the issue.

Sources close to the development said the company was evaluating the proposal and that post-acquisition, further investments in the asset would be required.

"The deal could be attractive for Ranbaxy from a long-term perspective," said a Mumbai-based pharmaceutical sector analyst.

According to Andrx's website, its branded business, Andrx Laboratories, includes medicines such as Altoprev (lovastatin extended release tables), Entex LA (phenyle phrine gualfenesin), Entex PSE (pseudoephedrine guaifenesin), Fortamet (mefrominHCI extended release tablets).

The business division consists of the sales and marketing organisation, besides the products.

As a part of its portfolio rationalisation strategy, highlighting the decision to exit non-performing businesses, Andrx has in the recent past announced it would focus on formulation development of controlled-release pharmaceuticals and distribution and divest or seek other strategic alternatives for its branded pharmaceuticals business.

Andrx's brand products business segment incurred losses of about $31 million (Rs 135 crore) for the first nine months of 2004.

Ranbaxy already has a tie-up with Andrx through which the US company transferred its marketing exclusivity rights for Monopril-HCT in favour of Ranbaxy's US arm because of its inability to produce the cardiovascular drug.