Ranbaxy Hits Back at Concerns Over Mixed 2004 Results

Senior sources at leading Indian generics producer Ranbaxy have clarified the company's mixed results for 2004. The drugmaker recently reported an 11% decline in net profit in the fourth quarter to INR1.57bn (US$35.80mn), with profit falling 2.2% over the full year despite a 21% year-on-year growth in sales to INR53.33bn (US$1.18bn).

Nevertheless, the company has cited extensive research and development spending in the year, as it attempts to assure its future by moving into research-based activities. A substantial proportion of this activity is to be concentrated in the US. Further, the company also claims that price pressures on its generics line in its home market are intensifying.

Following a sharp fall in its market valuation since the results were published, Ranbaxy has continued to insist that new product launches in 2005 will restore the company to its customary strong growth. The Indian producer has pledged to launch a generic version of blockbuster cholesterol treatment atorvastatin, marketed by Pfizer as Lipitor, despite pending legal action from the US drugmaker estimated to have cost Ranbaxy some US$25mn last year. Meanwhile, the company received four ANDA approvals from the US FDA in the fourth quarter, bringing approvals to 16 of the 26 products filed in the year.