Emerging markets spur Ranbaxy Q3 net by 65 pc

NEW DELHI: Spurred by growth in emerging markets, Ranbaxy Laboratories on Thursday reported a 65 per cent jump in its consolidated net profits for the third quarter ended September $30 at $50 million.

The company said its board at a meeting held on Thursday has given an in-principle approval to the proposed demerger of its drug discovery and research operations into a separate entity.

"The proposed demerger of our drug discovery and research operations will provide greater flexibility and impetus to our research arm while unlocking value for the company and its shareholders," Ranbaxy Chief Executive Officer and Managing Director Malvinder Mohan Singh said.

With the proposed demerger, Ranbaxy would join other firms Dr Reddy's Laboratories and Sun Pharma Ltd which had earlier de-hived their R&D operations into new entities. A number of drug firms, including Mumbai-based Nicholas Piramal, are also in the process of de-hiving their R&D arms.

Ranbaxy's consolidated revenues in the third quarter grew 15 per cent to $406 million compared to $353.04 million in the corresponding quarter last fiscal. The company also declared an interim dividend of Rs 2.5 on a share of Rs 5 each (50 per cent) for its shareholders.

The company attributed revenue growth during Q3 to increase in business from the emerging markets which contributed nearly 54 per cent to its global sales. Revenues in the emerging markets during the quarter under review were up by 17 per cent.