The Hindu Business Line : Ranbaxy group net down 8.3%

RANBAXY Laboratories Ltd and its subsidiaries have registered an 8.3-per cent decline in net profits for the fourth quarter ended December 31, 2003 even as it recorded a 14-per cent growth for the financial year.

For the fourth quarter, on sales of Rs 1,144.4 crore, the group registered net profits of Rs 175.8 crore compared with Rs 191.7 crore registered last year.

During the financial year ended December 31, 2003, net sales grew 22 per cent and stood at Rs 4,516.5 crore (Rs 3,713.8 crore). Profit before tax stood at Rs 1,018.1 crore (Rs 833.4 crore), a growth of 22 per cent, while net profits stood at Rs. 739.3 crore (Rs 647 crore), an increase of 14 per cent.

According to Dr Brian W. Tempest, Joint Managing Director and CEO-designate, the decline in profits for the fourth quarter is attributed to the decline in sales of antibiotic Ceftin from $43 million to $5 million. The drug company was forced to cut prices due to increased competition as a result of expiry of Glaxo's patent.

"The US business has grown by 100 per cent if you take Ceftin out. We are planning to fill the hole by introducing newer products," Dr Tempest said. He also added that the revenues from the US market grew 39 per cent to $411 million.

In 2004, Dr Tempest said the company expected to register a 17-20 per cent growth in sales. He also expected the second half to be buoyant with the introduction of newer products. During the last quarter of 2003, Ranbaxy outperformed the market with a growth of 9.6 per cent compared to the Indian industry growth of 7.9 per cent.

In 2003, Ranbaxy increased its R&D expenditure from Rs 197.7 crore to Rs 283 crore.

The company claimed that the NCE (New Chemical Entity) pipeline continued to progress as planned and during the quarter and RBx 7796 (anti-asthma molecule) entered phase II studies. Ranbaxy and GlaxoSmithKline plc entered into a drug discovery and clinical development collaboration covering a wide range of therapeutic areas. Meanwhile, Ranbaxy Laboratories Ltd at its meeting today also approved the appointment of Mr Gurcharan Das as an Additional Director on the board of directors of the company.