Ranbaxy plans to spin off research arm as Q3 net profit zooms 48 per cent
18 Oct 2007
Ranbaxy reported a 48 per cent rise in net profit at Rs207 crore - excluding foreign gains and losses on translation - for the third quarter, against the comparable year-ago net profit of Rs162 crore.
The company''s board had earlier approved a proposal to spin off the research arm to accelerate drug discovery, spur growth and facilitate collaboration.
In a statement issued today, Gurgaon-based Ranbaxy said its business performance remained strong, and it expected this trend to continue for the remainder of the year.
Malvinder Singh hedged earnings from overseas to protect against gains in the rupee.
The $4 billion Ranbaxy also made eight acquisitions since January 2006, half of them in Europe and South Africa, to spur sales in new and growing markets.
``Emerging markets continue to witness good growth'''' with sales increasing 17 per cent to comprise more than half of revenue, the company said.
Ranbaxy''s sales in India jumped 15 per cent to $81 million. Revenue from Europe increased 8 per cent to $78 million in the quarter, while that from the US rose 7 per cent to $102 million.
Ranbaxy is seeking more partnerships and acquisitions to boost sales and is open to buying stakes in existing partners to gain access to new therapeutic areas including drugs for lifestyle related diseases, eye care and asthma, Singh said.
