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Ranbaxy spurts on back of US initiative
March 03, 2003 18:17 IST
Ranbaxy Laboratories rose today on reports that the company's US arm has received tentative regulatory approval to launch the generic version of Lotensin.
The scrip of the pharmaceutical major was up 2.54% at Rs 629.50 on the BSE by 14:07 IST. A volume of 97,046 shares was recorded on the counter. In 19 sessions between 31 January and 28 February 2003, the scrip had shed 7.53% to Rs 613.90 from Rs 663.90.
The rise in the Ranbaxy stock was purely on reports that Ranbaxy Pharmaceuticals Inc, a wholly-owned subsidiary of the company, has received tentative approval from the US Food and Drug Administration to market Benazepril Hydrochloride Tablets in 5 mg, 20 mg and 40 mg strengths.
RPI's formulation of Benazepril Hydrochloride tablets is bio-equivalent to the listed drug Lotensin of Novartis Pharmaceutical Corporation. The branded sales of Lotensin was $ 332.5 million (approximately Rs 1,600 crore) in 2002, as per IMS MAT, December 2002.
Lotensin is indicated for treatment of hypertension, which can be used separately or in combination with thiazide diurectics. Another angiotensin converting enzyme inhibitor Captopril has caused agranulocytosis, especially in patients with renal impairment or collagen vascular disease. There is no adequate data available to show that Benazepril Hydrochloride tablets (brand name Lotensin) does not have a similar risk.
Analysts said the US arm of Ranbaxy securing approval for launching the generic form of Lotensin may boost the company's sales as well as profits. It will further expand the company's overall product portfolio and add depth to the number of cardiovascular products offered by it to the US healthcare system.
Meanwhile, the rise in the Ranbaxy scrip is also due to buying support following the government's emphasis on the healthcare sector in the Union Budget for 2003-04.
For the full year, Ranbaxy on a consolidated basis, registered a 130.7% rise in net profit to Rs 608.4 crore (Rs 6.08 billion) on net sales rise of 40.3% to Rs 3,823.4 crore (Rs 38.23 billion).
BSE code: 500359
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