Mumbai: Ranbaxy Laboratories Ltd, the country’s largest drug maker, said December-quarter loss widened to Rs.492.4 crore from Rs.298.2 crore a year earlier because of adverse foreign exchange fluctuations and declining sales.
Sales fell 29% to Rs.2,711 crore in the three months ended 31 December, largely on account of expiry of market exclusivity in the US and also the recall of Lipitor generic.
During the quarter, Ranbaxy incurred a foreign exchange loss of Rs.180 crore and a financial cost of Rs.186 crore on account of the recall of its much-touted generic copy of cholesterol drug Lipitor in the US.
These and the drop in the prices of products for which market exclusivity expired contributed to the additional net loss for the December quarter.
Pharma analysts had expected a difficult quarter for Ranbaxy mainly on account of the recall of its Lipitor version in the US.
Ranbaxy, which follows a January-December financial year, swung to a net profit of Rs.922.8 crore for the full year from a net loss of Rs.2,899.8 crore in the previous year. Sales during the year rose 22.9% to Rs.12,253 crore.
“2012 was a mixed year for us,” Arun Sawhney, chief executive and managing director of Ranbaxy, said in a statement on Tuesday. “While we delivered our strongest-ever sales performance monetizing our major key product opportunities, we also faced challenges, primarily the recall of atorvastatin (Lipitor) in the US market at the end of the year.”
Shares of Ranbaxy dropped 3.66% to close at Rs.417.30 on BSE on Tuesday, while the benchmark Sensex fell 1.64% to 19,015.14 points.
Ranbaxy has undertaken a consent decree with the US Food and Drug Administration seeking its approval to start exporting products from its Indian facilities after the US regulator banned two of those factories in 2009.
“We have made good progress on the consent decree honouring all our commitments till date. We continue to remain confident of monetizing our large ANDAs (abbreviated new drug application seeking approval for generic drugs) and we have also taken significant steps, which will position Ranbaxy to emerge stronger with a competitive edge, in the rapidly changing business climate,” Sawhney added.
In the December quarter, emerging markets contributed Rs.1,362 crore in sales, accounting for 51% of Ranbaxy’s total revenue.
Developed markets recorded Rs.1,093.8 crore, accounting for 41% of the total sales. Domestic sales during the quarter rose 12% from a year ago to Rs.541.8 crore.