Reported By:
| Edited By: Priyanka Golikeri |Source: DNA |Updated: Mar 30, 2018, 04:00 AM IST
Ranbaxy Laboratories, which faced regulatory issues two years ago in the US, is set to see the country become its biggest market.
According to pharmaceutical industry experts, the company’s sales from the US would spike in the next two to three years, backed by the launch of a huge portfolio of generic medicines as well as niche products.
Currently, about 24-25% of the Rs8,700 crore company’s sales come from the US. Experts see the US contribution rising to about 40% in two to three years.
“The company has a basket of over 60 pending ANDA approvals in the US. It also has a very strong set of first-to-file (FTF) opportunities on blockbuster drugs like Lipitor, Nexium, Actos, Diovan, etc. So all this would speed up their US sales,” said a Mumbai-based senior research analyst.
ANDA, or abbreviated new drug application, refers to an application needed to bring a generic medicine out in the market.
While, FTF is something which gives a company 180 day period of exclusivity on a product in the US, during which, it is the only company (other than the innovator company), to sell a generic version of the product.
A Ranbaxy spokesperson said the US is one of the most crucial geographies, but no estimates can be given as to how much it would contribute going forward.
Analysts predict timely monetisation of FTFs on Lipitor, Actos, Nexium, Diovan to fetch Ranbaxy about $1.7 billion during the exclusivity period.
“US sales could jump rapidly, provided they are successful in timely monetisation of FTFs, as well as in launching other generics,” said Bhavin Shah, research analyst, Dolat Capital Market.
According to Sujay Shetty, associate director, PricewaterhouseCoopers, as the US is a large generic opportunity, companies can get margins between 20-30%.
“However, as all companies run there because of the sheer volume of the market, competition is intense, especially from global generic players like Teva.”
In 2009, Ranbaxy’s US sales slipped 11%, because of the import alert and banning of 30 of its products by the US FDA (US regulatory watchdog) over irregularities in its manufacturing plants in Himachal Pradesh and Madhya Pradesh.
