The Hindu Business Line : Ranbaxy enters Italy thru' 100 pc arm

SPREADING itself in the European Union (EU), Ranbaxy Laboratories Ltd has forayed into the Italian market through its wholly owned subsidiary, Ranbaxy Italia S.P.A.

This is part of the company's organic growth strategy. It will be introducing high-quality generic medicines from its extensive international product portfolio in this market by early 2006. In a company statement, Mr Malvinder Mohan Singh, President - Pharmaceuticals, and also Executive Director, Ranbaxy, said, "We are delighted at the launch of our new subsidiary here. I strongly believe that generic medicines have an important role to play in serving the priorities of the Government to make healthcare more affordable and accessible to all.

"We are deeply committed to this task and will soon be introducing a number of products in Italy for the benefit of all patients."

The decision to set up the subsidiary will enable the company to consolidate its presence in the Top 5 European pharmaceutical markets. Currently, it is present in 21 of the 25 EU countries. Italy is the fourth largest pharmaceuticals market in Europe after Germany, the UK and France with a total market size of $16.5 billion.

The Italian Government has been encouraging introduction of generics to bring down the healthcare costs. Hence, this segment is expected to grow rapidly in the coming years. "Additional impetus will come from the expiry of some blockbuster drug patents, expected by 2008-2009," said the statement the Ranbaxy statement.

The Ranbaxy share closed at Rs 525.10 on the Bombay Stock Exchange on Tuesday down from last month's closing price of Rs 536.50.

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