In October 2005, Ranbaxy's shareholders approved plans to raise up to $1.5 billion using various instruments to fund growth, including acquisitions. The company, which has aggressively bought western firms to expand global operations, had evinced keen interest in Merck's generic operations.
Reports added that the auction of that business was likely to begin next month. Dr Reddy's Laboratories is also in the race to acquire Mercks generic unit, while Cipla had opted out of the auction saying the valuation was too high.
Earlier reports had suggested that private equity groups such as Carlyle and Blackstone may partner Indian firms in the auction.
The stock was firm in a weak market, but came off a high of Rs 403.45.
As many as 3.77 lakh shares changed hands in the counter on BSE.
The stock slipped sharply from Rs 415.15 on 13 February to Rs 391.60 by 19 February 2007 on reports that the US offices of Ranbaxy were searched by federal officials. However, a spokesperson for the firm told that despite the search, no facilities or offices were closed.
Ranbaxy, in early February 2007, announced it had received final FDA approval to manufacture and market sertraline hydrochloride tablets, a generic version of Pfizer's blockbuster Zoloft (sertraline hydrochloride), which lost patent protection last year, as well as sertraline hydrochloride oral concentrate.
Annual market sales for sertraline hydrochloride tablets are around $3.07 billion (2.34bn), and $4.8 billion for the oral concentrate, according to the company. Sales of the drug are set to boost Ranbaxy's already impressive 15% share in the US generics market.
Ranbaxy represents one of the growing Indian pharmaceutical players, who are slowly but surely encroaching on territory traditionally the ground of big US and European pharmaceutical companies. Along with Dr Reddy's and Nicholas Piramal, among others, Ranbaxy is one of the Indian firms gaining prominence in the pharmaceutical sector.
Ranbaxy Laboratories posted 41.92% rise in net profit to Rs 139.07 crore for the fourth quarter ended December 2006 compared to Rs 97.99 crore for the quarter ended December 2005. Total income increased 13.66% to Rs 1035.33 crore (Rs 910.84 crore).
For FY-2006, Ranbaxy Laboratories posted a net profit of Rs 386.45 crore compared to Rs 223.70 crore in FY 2005. Total income for FY-2006 increased to Rs 4004.98 crore (Rs 3651.30 crore).
In December 2006, Ranbaxy Laboratories, Zydus Cadilla and Aurobindo Pharma received approval from the US FDA to market cholesterol lowering drug, Simvastatin, the generic version of Merck's `Zocor'. Ranbaxy has permission to sell the drug in strengths of 5 mg, 10 mg, 20 mg and 40 mg. Ranabaxy Laboratories had been selling the drug in 80 mg dosage since June.
Ranbaxy Laboratories also received US Food and Drug Administration (FDA) approval to market atenolol tablets, an equivalent of AstraZeneca's hypertension drug, Tenormin(r). The total annual market sales for atenolol were $133.6 million according to market research agency IMS' September 2006 data.
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