Stock update: Ranbaxy

Stock update: Ranbaxy

Ranbaxy Laboratories has announced that it will market products from Daiichi Sankyo’s portfolio in Mexico, through its Latin America-based subsidiary.

The company expects its understanding of the Latin American markets and its local presence to pave the way for an efficient and immediate market entry for Daiichi Sankyo, while priming the channel for the launch of Ranbaxy specialty products in the future.

Mexico is Latin America’s second-biggest market, after Brazil. The total pharmaceutical market in Mexico is valued at around $10.4 billion and is ranked as the 11th largest market globally.

On the bourses, the stock is up by 24.9% in the last month, and is trading at 2.3x its CY2010E sales. We recommend a SELL on the stock, with a target price of Rs251.