Ranbaxy profit declines 56, Malvinder in the saddle

Consolidated sales for the company fell 1 to Rs 1,406 crore. Pricing pressure and a lack of big product launches dented the sales by 27 per cent in the US, which accounts for a third of overall revenues. But a 13 per cent growth in non-US sales compensated significantly, the company said.

Ranbaxy, which saw it scrip price decline by more than 40 per cent last year, has given a forecast of 18 per cent growth for 2006. Most of this growth will come from new product launches and the inorganic route, as pricing pressures in the US would continue, said the new managing director.

The company8217;s foray into new markets like Japan should also help to achieve its target of 2 billion revenues by 2007, Singh added. The drugmaker is slashing its R038;D spend by 20 million to 85 million for 2006.

For the calendar year 2005, Ranbaxy8217;s consolidated sales fell 2 per cent to Rs 5,196 crore while profit after tax fell 62 per cent to Rs 259 crore.