RANBAXY FY 2010 PAT AT $327 Mn (Rs. 14,968 Mn), UP ON STRONG EARNINGS
Board Recommends Dividend of 40 Percent

Gurgaon, India, February 22, 2011: The Board of Directors of Ranbaxy Laboratories Limited (RLL) at their meeting held today, took on record the audited results for the year ended December 31, 2010.

Consolidated Financial Performance for twelve months ended December 31, 2010

• Profit After Tax was $327 Mn (Rs.14,968 Mn), a margin of 18% to sales [FY’09: $61 Mn; Rs. 2,965 Mn]
• Profit Before Tax was $459 Mn (Rs.21,001 Mn), a margin of 25% to sales [FY’09: $209 Mn; Rs. 10,098 Mn]
• Global sales were at $1,868 Mn (Rs.85,507 Mn) [FY’09: $1,519 Mn; Rs.73,441 Mn]

The Board of Directors of the Company also recommended a dividend of Rs. 2 per share.

Commenting on the positive results for the year, Mr. Arun Sawhney, Managing Director, Ranbaxy, said, “We have had a strong year attributable in large measure to the robust revenue growth in our key geographies and the realizations from our First-to-File (FTF) opportunities, in the US. On the cost side, we have gained from greater efficiencies in manufacturing.” 

Key Highlights/Developments:

• Project Viraat, aimed at gaining leadership in the Indian market, has been successfully  rolled out. This is expected to show results in 2011.
• Despite continued challenges in the US market, the Company successfully launched its FTF product, Donepezil Hydrochloride Tablets 5 mg and 10 mg with 180 days exclusivity in Q4, 2010.
• On its outstanding loans and derivatives position, the company had Mark to Market forex gains due to the strengthening of the Indian Rupee.
• Sonke Pharmaceuticals, Ranbaxy’s Joint Venture in South Africa was awarded a R913.5 Mn (~$130 Mn) national ARV tender. Sonke will supply the South African Government with ARVs for the next two years.
• More than fifty (50) National level regulatory agency inspections were conducted successfully at Ranbaxy’s various global manufacturing sites. These included regulators from US FDA, South Africa, World Health Organization (WHO), European Union Countries/EMEA (Poland, United Kingdom, Ireland, Romania, France, Germany), Brazil, Australia, Korea, China, Malaysia, Singapore, the Gulf Cooperation Council (GCC), Canada, Kenya, and India.
• Ranbaxy and Daiichi Sankyo (DS) have undertaken many initiatives to realize synergies between the two Companies. These include the launching of DS innovator products by Ranbaxy, in markets such as India, Romania, Africa etc.
• During the year Ranbaxy’s New Drug Discovery Research (NDDR), was transferred to Daiichi Sankyo India Pharma Pvt. Ltd (DSIN). This move will provide a sharper focus to Ranbaxy’s R&D efforts in its core area of generics.

Global Sales

• Global sales in 2010 were $1,868 Mn (Rs. 85,507 Mn), reflecting a growth of 23% over the previous year. In Rupee terms, sales grew by 16%. Emerging markets accounted for 50% of sales during the year, while developed markets contributed 44%
• North America recorded sales of $660Mn (Rs.30,226 Mn) for the year, a growth of 67%.
  In USA, sales for the year were $600 Mn (Rs.27,448 Mn), a growth of 80% .
• Business in Europe continues to be competitive for generic companies. In Europe, the Company recorded sales of $272 Mn (Rs 12,432 Mn) for the year, representing a growth of 1% in Dollar terms.
• The India Pharma business recorded sales of Rs. 17,593 Mn ($384 Mn), a growth of 8% over the previous year. Of this, the Global Consumer Healthcare business recorded sales of Rs. 2,485 Mn ($54 Mn), a growth of 17% for the year. All key brands in this portfolio witnessed growth atmarket level.Revital, the company’s flagship brand, is now the 6th largest product in the Indian Pharmaceutical market.
• The CIS region recorded sales of $101 Mn (Rs. 4,628 Mn), a growth of 18% for the year.
• Africa region recorded sales of $154 Mn (Rs.7,040 Mn), a growth of 23% for the year.
• Latin America recorded sales of $83 Mn (Rs.3,793 Mn), a growth of 17% for the year.
• API business registered sales of $114 Mn (Rs.5,238 Mn), a growth of 3% for the year.

Outlook: During 2011, the Company expects to achieve base case sales of approximately $1.87 Bn (Rs. 84 Bn).

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company’s foray into Novel Drug Delivery Systems has led to proprietary "platform technologies," resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 46 countries and manufacturing operations in 7 countries. Ranbaxy is a member of the Daiichi Sankyo Group. Daiichi Sankyo is a leading global pharma innovator, headquartered in Tokyo, Japan.