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Ranbaxy Lab drops as base effect pulls Q1 net profit lower

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Capital Market
Last Updated : May 08 2013 | 4:00 PM IST

The company announced Q1 results during trading hours today, 8 May 2013.

Meanwhile, the S&P BSE Sensex was up 71.54 points or 0.36% at 19,960.49.

On BSE, 3.33 lakh shares were traded in the counter as against average daily volume of 1.13 lakh shares in the past one quarter.

The stock hit a high of Rs 460 and a low of Rs 442.35 so far during the day. The stock had hit a 52-week low of Rs 370.50 on 1 March 2013. The stock had hit a 52-week high of Rs 578.30 on 4 September 2012.

The stock had underperformed the market over the past one month till 7 May 2013, rising 1.56% compared with the Sensex's 7.8% surge. The scrip had, however, outperformed the market in past one quarter, surging 4.75% as against Sensex's 1.58% rise.

The large-cap pharmaceutical company has equity capital of Rs 211.55 crore. Face value per share is Rs 5.

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Ranbaxy Laboratories said that the profitability in Q1 March 2013 was lower than in Q1 March 2012 primarily because of the base effect. The revenue and profitability in Q1 March 2012 was boosted by contribution from exclusivity drug launches.

Ranbaxy said that its global sales rose 10% on a like-to-like basis in Q4 March 2013 over Q4 March 2012.

Commenting on the Q1 performance, Mr. Arun Sawhney, CEO & MD, Ranbaxy Laboratories said, "India and key emerging markets of East Europe plus CIS and Africa plus Middle East returned strong growth. The focus on differentiated products gained momentum during the quarter as we improved our market share in Absorica and received the rights to market Desevenlafaxine in US. We also continued to work towards optimizing overhead and other expenses".

During Q1 March 2013, the company launched Desevenlafaxine, an NDA for Pristiq in the United States. Ranbaxy Laboratories said that the gain in market share in Absorica, isotretenoin NDA has been promising. The exclusivity period for Pioglitazone hydrochloride authorised generic (AG) came to an end in mid February 2013, Ranbaxy Laboratories said in a statement.

During the quarter, the company has filed 3 abbreviated new drug applications (ANDA) for the US market (including 2 potential FTFs). The company also resumed supplies of Atorvastatin in the US market.

Ranbaxy Laboratories said it has gained over 50% market share in Cevimeline hydrochloride 30 mg capsules in the US. The drug is the authorised generic product of Daiichi Sankyo, marketed under the brand name Evoxac.

Under the Hybrid Business Model, Ranbaxy and Daiichi Sankyo worked on the collaboration of their businesses in Brazil to expand the business of both the companies, Ranbaxy Laboratories said in a statement.

Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of generic medicines. Ranbaxy serves its customers in over 150 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 43 countries and manufacturing operations in 8 countries. Ranbaxy is a member of the Daiichi Sankyo Group.

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First Published: May 08 2013 | 2:21 PM IST

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