RANBAXY TO STUDY NEW ACQUISITIONS IN US AND GERMANY

Leading Indian generics producer Ranbaxy intends to acquire new assets in Germany and the US. Although the company has not named any specific targets, Ranbaxy remains determined to expand its presence in developed markets. The Indian drugmaker envisages spending roughly US$100mn on new manufacturing operations, amid heavy recent investment in R&D.

The two markets are among the company's most lucrative, as US sales contribute some 50% of global revenues, while Europe accounts for roughly 20% of earnings. Ranbaxy recently restructured its overseas subsidiaries and is now targeting both countries' well-developed research sectors. The company cited increasing price pressure on its US generics business, where it claims to have 50 products awaiting US FDA approval. In Germany, meanwhile, the time could be ripe for an acquisition, as the government increasingly focuses on cost containment and smaller producers struggle to maintain market share.