FY 2009 PROFIT BEFORE TAX OVER RS. 1000 CRORES; GLOBAL SALES AT RS. 7344 CRORES

Gurgaon, India, February 25, 2010: The Board of Directors of Ranbaxy Laboratories Limited (RLL) at their meeting held today, took on record the audited results for the quarter and year ended December 31, 2009.

Consolidated Financial Performance for twelve months ended December 31, 2009
• Global sales were USD 1519 Mn (Rs. 73,441 Mn) [FY’08: USD 1,667 Mn; Rs.72,555 Mn]
• Profit Before Tax was USD 209 Mn (Rs. 10,098 Mn), a margin of 14% to sales [FY’08: USD (320) Mn; Rs. (15,000) Mn]
• Profit After Tax was USD 64 Mn (Rs. 3,107 Mn), a margin of 4% to sales [FY’08: USD (198) Mn; Rs. (9,349) Mn]

Consolidated Financial Performance for the quarter ended December 31, 2009 (Q4’09)
• Global sales were USD 482 Mn (Rs. 22,699 Mn), a growth of 25% over Q4’08 [Q4’08: USD 387 Mn; Rs.19,096 Mn]
• Profit Before Tax was USD 194 Mn (Rs. 9,389 Mn) [Q4’08: USD (242) Mn; Rs.(11,464) Mn]
• Profit After Tax was USD 54 Mn (Rs. 2,620 Mn) [Q4’08: USD (142) Mn; Rs. (6,798) Mn]

The effective tax rate is higher during the quarter, and the year, due to accounting treatment of taxes on unrealised profits, and partial impairment of deferred tax assets in accordance with Accounting Standard 22 of Indian GAAP. Such tax adjustments are non-cash in nature, and are expected to be normalised over the coming quarters.

Commenting on the business results for the quarter, Mr. Atul Sobti, CEO and Managing Director, Ranbaxy, said, “We realized various opportunities, while continuing to manage key challenges. Good revenue growth in most key geographies, launch of two First-to-File (FTFs) in USA, and continued cost containment, has ensured consistent quarter-on-quarter improvement in performance. The Company ended the year with strong business and financial performance, and over achieved on the guidance given for the year.”

Key Highlights/Developments:
• Profitability improved in Q4’09 over previous year, as well as trailing quarter.
• Despite continued challenges in the US market, the Company successfully launched two FTF products with exclusivity viz., Valacyclovir and Oxcarbazepine Suspension during Q4’09, and Sumatriptan earlier in the year.
• Due to strengthening of the Indian Rupee, gains on account of Mark-to-Market (MTM) translation losses booked earlier in the year were substantially reversed.
• The Company rolled out project “Viraat”, aimed at strengthening its leadership position in the market.
• The Company’s facility at Paonta Sahib received GMP approvals from MHRA-UK, TGA-Australia and WHO, Switzerland. The Batamandi facility at Paonta Sahib was approved by PMDA-Japan.
• The Company announced the commencement of Phase-III clinical trials for its new Anti-malaria combination drug, Arterolane Maleate + Piperaquine Phosphate, in India and Thailand.
• Realising synergies between Ranbaxy and Daiichi Sankyo (DS), the Company launched DS research products Olmesartan in India, and Raloxifene in Romania. The Company has set up a new division to market DS products in Mexico. Ranbaxy will also launch Olmesartan in six African countries
• The Company acquired brands in dermatology and pain management segment from Ochoa Laboratories Limited, India.
• Rationalising its business model in select markets, the Company terminated its alliance with Nippon Chemiphar Co., Japan, and divested equity interest in Ranbaxy (Guangzhou China) Limited. The Company continues to pursue business through other avenues in these markets.
• The Company made its first USFDA filing from its new facility located at its SEZ in Mohali.
• In Q4’09, the Company received a Warning Letter from the USFDA for its facility at Gloversville, NY, USA. The Company has responded to the observations of the regulator.
• The Company received a letter from USFDA indicating that all ANDAs from its Paonta Sahib facility are now covered under its “Application Integrity Policy”. The Company continues to cooperate with the USFDA and the Department of Justice, USA, towards early resolution of all issues.
• During the quarter, the Company made 128 filings and received 65 approvals for dosage forms. For APIs, the Company made 44 filings and received 40 approvals. This takes the full year filings of dosage forms to 237, with 245 approvals, and 179 filings for APIs with 170 approvals.

Global Sales
• Global sales in 2009 were USD 1,519 Mn (Rs. 73,441 Mn), de-growth of 9% over previous year. In Rupee terms, sales grew moderately by 1%. Sales during the Quarter recorded growth of 25% at USD 482 Mn (Rs. 22,699 Mn). Emerging markets accounted for 54% of sales during the year, while developed markets contributed 39%.
• North America: The region recorded sales of USD 397 Mn (Rs. 19,179 Mn) for the year, a de-growth of 9%. For the quarter, sales grew by 68% to USD 175 Mn (Rs. 8,330 Mn).
o In USA, sales for the year were USD 334 Mn (Rs. 16,130 Mn), a de-growth of 14%. However, sales during the quarter grew by 78% to USD 158 Mn (Rs. 7,557 Mn).
• Business in Europe remains competitive for generic companies. In Europe, the Company recorded sales of USD 269 Mn (Rs. 13,001 Mn) for the year, a de-growth of 9%. During the quarter, sales grew by 2% to USD 80 Mn (Rs. 3,767 Mn).
• India Pharma business recorded sales of Rs. 14,171 Mn, a growth of 9% for the year. During the quarter, sales were Rs. 3,334 Mn, a growth of 6%. Global Consumer Healthcare business recorded sales of Rs. 2,129 Mn, a growth of 12% for the year. During the quarter, sales grew 26% to Rs. 726 Mn. All key brands witnessed robust growth at market level. Revital, the flagship brand, is now the 7th largest product in the Indian Pharmaceutical market (IMS MAT Nov’09).

The Company is currently ranked 2nd in the Indian pharmaceutical market with 4.98% market share (IMS, Oct-Dec’09).
• The Asia Pacific region recorded sales of USD 100 Mn (Rs. 4,829 Mn), a growth of 3% for the year. During the quarter, sales grew 11% to USD 28 Mn (Rs. 1,308 Mn).
• The CIS region recorded sales of USD 86 Mn (Rs. 4,156 Mn), a de-growth of 10% for the year. During the quarter, sales grew 8% to USD 31 Mn (Rs. 1,458 Mn).
• Africa region recorded sales of USD 125 Mn (Rs. 6,055 Mn), a growth of 4% for the year. During the quarter, sales were USD 28 Mn (Rs. 1,282), a de-growth of 25%.
• Latin America recorded sales of USD 71 Mn (Rs. 3,433 Mn), a growth of 2% for the year. During the quarter, sales were USD 21 Mn (Rs. 997 Mn), a growth of 24%.
• API business registered sales of USD 112 Mn (Rs. 5,416 Mn), a de-growth of 2% during the year. In Q4’09 sales were USD 28 Mn (Rs. 1,301 Mn).

Outlook
During 2010, the Company expects to achieve sales of approximately Rs. 78 Bn (USD 1.7 Bn), as against Rs. 73.4 Bn in 2009, a growth of 6%; and PAT of approx Rs. 4.6 Bn (USD 100 Mn), as against Rs. 3.1 Bn in 2009, a growth of 48%. This estimate is based on the assumptions of exchange rate of USD:INR of 46.00.

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.

For further information please contact:
Ramesh L. Adige
President - Corporate Affairs and
Global Corporate Communications
email: ramesh.adige@ranbaxy.com
Tel: +91-124-4135000

Raghu Kochar
Director-Corporate Communications
email: raghu.kochar@ranbaxy.com
Tel: +91-124-4135141
Mobile: 9811617256

Krishnan Ramalingam
General Manager-Corporate Communications
email: krishnan.ramalingam@ranbaxy.com
Tel: +91-124-4135143
Mobile: 9810042540