Ranbaxy Laboratories,India’s top drugmaker by sales,posted an unexpected quarterly loss of 5.86 billion rupees ($106 million) as foreign exchange losses ballooned although sales in its key U.S. market more than doubled.
Ranbaxy,controlled by Japan’s Daiichi Sankyo Co,recorded a loss of 5.99 billion rupees on foreign currency derivatives in fiscal second quarter ended June,compared to a gain of 1.12 billion rupees a year earlier,it said.
Net sales rose 54.5 percent to 31.74 billion rupees,Ranbaxy said.
Analysts had forecast net profit at 3.21 billion rupees on net sales of 29.06 billion rupees.
The depreciation of the Indian rupee against the dollar,though favourable to Ranbaxy’s export business,had an adverse impact on the company,said Ranbaxy.
Sales and profitability grew in the quarter with overall improvement across major regions,aided further by exclusivity sales in some of the key markets,Arun Sawhney,chief executive,said in a statement. Sales in North America,Ranbaxy’s biggest market,grew 140 percent to 14.71 billion rupees in April-June,primarily due to the generic version of Lipitor,Pfizer’s cholesterol-lowering blockbuster drug.
Ranbaxy settled a compliance-related dispute with the U.S. drug regulator early this year and can now ship products from its Indian factories to the world’s largest drug market.
Indian drugmakers including Ranbaxy,Dr Reddy’s Laboratories and Sun Pharmaceutical Industries account for about a third of applications to sell generic drugs in the United States and are expected to double their sales in that market to about $5 billion over the next five years.
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But they face intense competition,rising lawsuits from rival drugmakers and a stricter U.S. health regulator in their race for the lucrative off-patent market.
Valued at $3.9 billion,shares in Ranbaxy closed down 2.7 percent at 501.80 rupees on Thursday. The stock is up about 24 percent this year,in line with the benchmark healthcare index’s 24.4 percent rise.
Ranbaxy registers net loss of Rs 580cr in Q2
Drug major Ranbaxy Laboratories today reported a consolidated net loss of Rs 580.14 crore for
the second quarter ended June 30,2012,primarily due to foreign exchange loss.
The Gurgaon-based firm had posted a net profit of Rs
245.53 crore during the same period of previous year,Ranbaxy
Laboratories said in a filing to the BSE.
The net sales of the company rose to Rs 3,174.06 crore
during the quarter under review compared to Rs 2,053.74 crore
in the year-ago period.
“The depreciation of the rupee against the dollar,though
favourable to Ranbaxy’s export business had an adverse impact
on the company mainly on account of application of accounting
standards to marking to market the entire derivatives and
foreign currency denominated loans,” Ranbaxy said.
During the quarter under review,the firm had forex loss
of Rs 599.35 crore as against a gain of Rs 111.79 crore in the
same period of previous year.
Commenting on the quarterly performance,Ranbaxy CEO and
Managing Director Arun Sawhney said: “We capitalised on our
product focus approach with the successful monetisation of the
Atorvastatin and Atorvastatin + Amlodipine opportunities.”
The launch of anti-malarial drug Synriam was one of the
high points of the quarter,he added.
“The strategy to build long-term,differentiated value
drivers was rewarded with two NDA approvals in the
dermatological space in the USA,” he said.
On a standalone basis,the company posted a net loss of
Rs 925.66 crore for the second quarter ended June 30,2012.
The company had posted a net profit of Rs 150.37 crore during
the same period of previous year.
During the second quarter,the company’s sales from North
America jumped 140 per cent to Rs 1,471.1 crore,as compared
to same period of previous year.
Sales from the US market stood at Rs 1,377.1 crore in
second quarter,the company said.
Ranbaxy said its sales from India and Sri Lanka stood at
Rs 554 crore for the second quarter,a growth of 13 per cent,
compared to the same period of previous year.
The company’s sales also grew in Europe and CIS region
during the second quarter.
“Emerging market sales were impacted adversely in US
dollar terms due to the strengthening of the dollar against
such currencies,” the company said.
Ranbaxy became a part of the Daiichi Sankyo Group in 2008
after Japan’s third largest drug-maker bought a majority stake
for Rs 22,000 crore.
Shares of Ranbaxy today closed at Rs 501.80 on the BSE
in the late afternoon trade,down 2.63 per cent from its