Ranbaxy Laboratories
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| Type | Public |
|---|---|
| Traded as | BSE: 500359 NSE: RANBAXY |
| Industry | Pharmaceuticals |
| Founded | 1961 |
| Headquarters | Gurgaon, Haryana, India |
| Revenue |  89.61 billion (US$1.97 billion)(2010)[1] |
| Net income |  11.48 billion (US$252.56 million)(2010) |
| Parent | Daiichi Sankyo |
| Website | www.ranbaxy.com |
Ranbaxy Laboratories Limited (BSE: 500359) is an Indian pharmaceutical company that was incorporated in India in 1961. The company went public in 1973 and Japanese pharmaceutical company Daiichi Sankyo gained majority control in 2008.[2] Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries.[citation needed]
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[edit] History
[edit] Formation
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale.
[edit] Trading
In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.[citation needed]
For the twelve months ending on 31 December 2005, the company's global sales were at US $1,178 million with overseas markets accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil, Russia, and China: 29%). For the twelve months ending on December 31, 2006, the company's global sales were at US $1,300 million.
Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical developers, though a significant percentage of their products are off-patent drugs that are manufactured and distributed without licensing from the original manufacturer because the patents on such drugs have expired.
In December 2005, Ranbaxy's shares were hit hard by a patent ruling disallowing production of its own version of Pfizer's cholesterol-cutting drug Lipitor, which has annual sales of more than $10 billion.[3] In June 2008, Ranbaxy settled the patent dispute with Pfizer allowing them to sell Atorvastatin Calcium, the generic version of Lipitor(R)and Atorvastatin Calcium-Amylodipine Besylate, the generic version of Pfizer's Caduet(R) in the US starting November 30, 2011. The settlement also resolved several other disputes in other countries.[citation needed]
On 23 June 2006, Ranbaxy received from the United States Food & Drug Administration a 180-day exclusivity period to sell simvastatin (Zocor) in the U.S. as a generic drug at 80 mg strength. Ranbaxy competes with the maker of brand-name Zocor, Merck & Co.; IVAX Corporation (which was acquired by and merged into Teva Pharmaceutical Industries Ltd.), which has 180-day exclusivity at strengths other than 80 mg; and Dr. Reddy's Laboratories, also from India, whose authorized generic version (licensed by Merck) is exempt from exclusivity.
In June 2008, Japan's Daiichi Sankyo Company agreed to take a majority (50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion. Ranbaxy's Malvinder Singh remained as CEO after the transaction.[4]
On 16 September 2008, the Food and Drug Administration issued two Warning Letters to Ranbaxy Laboratories Ltd. and an Import Alert for generic drugs produced by two manufacturing plants in India.[5] By February 25, 2009 the U.S. Food and Drug Administration said it halted reviews of all drug applications including data developed at Ranbaxy's Paonta Sahib plant in India because of a practice of falsified data and test results in approved and pending drug applications. "Investigations revealed a pattern of questionable data," the FDA said.[6][7]
On December 1, 2011, Ranbaxy got the much-awaited approval from the US Food and Drug Administration to launch the generic version of drug lipitor in the United States of America after its patent expired.[8] [9]
On February 8, 2012, three batches of the gastric acid secretion inhibitor Pantoprazole were recalled in The Netherlands due to the presence of impurities [10].
[edit] Acquisition
In June 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy,[11] for a value $2.4 billion. In November 2008, Daiichi-Sankyo completed the takeover of the company from the founding Singh family in a deal worth $4.6 billion[12] by acquiring a 63.92% stake in Ranbaxy.
The addition of Ranbaxy Laboratories extends Daiichi-Sankyo's operations - already comprising businesses in 22 countries.[citation needed] The combined company is worth about $30 billion.[13]
[edit] See also
- Revital (A daily food supplement from Ranbaxy Global Consumer Healthcare)
- RANBAXY LABS (RANBAXY.EQ-IN) at Wikinvest
[edit] Notes
- ^ "Annual Report 2010". Ranbaxy Laboratories Limited. http://www.ranbaxy.com/annualreports/ar2010.zip. Retrieved 2011-10-03.
- ^ Bloomberg - Daiichi to Take Control of Ranbaxy for $4.6 Billion - June 11 2008
- ^ BBC News - Patent ruling hits Ranbaxy shares - 19 December 2005
- ^ Bloomberg - Daiichi to Take Control of Ranbaxy for $4.6 Billion - June 11, 2008
- ^ FDA.gov - FDA Issues Warning Letters to Ranbaxy Laboratories Ltd. - September 16, 2008
- ^ Reuters - US FDA says Ranbaxy plant falsified data - February 25, 2009
- ^ FDA.gov - Ranbaxy AIP infopage
- ^ http://www.businessweek.com/news/2011-11-30/ranbaxy-s-lipitor-copy-approved-by-fda-threatening-pfizer-sales.html
- ^ http://timesofindia.indiatimes.com/business/india-business/Ranbaxy-gets-approval-to-launch-generic-Lipitor-in-US/articleshow/10940626.cms
- ^ http://www.knmp.nl/nieuws/knmp-nieuws/knmp-nieuwsberichten-2012/knmp-waarschuwt-voor-verontreinigde-tabletten
- ^ India Knowledge@Wharton - The Ranbaxy-Daiichi Deal: Good Medicine, or a Harbinger of Future Ills? - June 12, 2008
- ^ TimesOnlineUK - Business - Takeover of Ranbaxy
- ^ Daiichi Sankyo gobbles Ranbaxy Laboratories for $4.6 billion
