Ranbaxy Laboratories declared the results for the quarter ended March ’09 and held a tele conference call on 24th April’09 to discuss the financial performance as well as future plans. The key takeaways from the meet are as follows:
- Consolidated net sales for the quarter declined by 4% to Rs 1558.4 crore due to poor monetary conditions, pricing pressures, an import alert on products in the USA, and the devaluation of several currencies in countries where the company has its operations.
- During the quarter, the Company received GMP approvals for Paonta Sahib Facility from MHRA-UK, TGA-Australia and WHO, Switzerland. The Batamandi facility at Paonta Sahib was approved by PMDA-Japan.
- The Company received 4 ANDA approvals from US FDA and 2 from TGA-Australia, during the quarter.
- In the quarter review, Ranbaxy launched first Daiichi Sankyo product Olvance (Olmesartan).
- The Company received a milestone payment from GlaxoSmithKline on successful initiation of Phase-I human clinical trials for a Respiratory Inflammation molecule.
- Ranbaxy received a tender for Rs. 73.90 crore for the supply of Anti Retroviral Drugs to the National AIDS Control Organisation, India. A major part of the order was serviced during the quarter.
- The Company received a letter from USFDA indicating that all pending and approved ANDAs from its Paonta Sahib facility have been added to a list maintained under its “Application Integrity Policy”.
- Capex for FY’09 would be around USD 100 million.
- R & D expenditure will be around USD 100 million for FY’09
- Company received Sumatriptan 100mg tablets from USFDA and launched the product in USA under an exclusivity arrangement of 180 days. Despite of exclusivity product the drug sales are less than the expectation.
- Due to site transferring, company may or may not launch generic block drug Valtrex in the current financial year. The company does not consider the sales of valtrex in its guidance.
- Company hedged an amount of USD 1.4 billion forward receivables in May’08 at around Rs 42-45 per dollar over eight years by entering into options.
- Expects min 3-4 months to get some clarity on US FDA issue.
- Expects remaining three quarters of the current financial year will breakeven.
- Except India and Russia markets, revenues from all other markets declined in the quarter under review.
- Company planning to restructure its European business and changed its strategy to bottomline approach rather than volumes.
- For CY’09, company gave a guidance to achieve a topline of Rs 7000 crore and loss of Rs 800 crore at PAT level. This estimate is based on the assumption that (i) exchange rate of USD: INR at Rs 50.5 and (ii) No further positive or negative impact from US FDA