Ranbaxy Laboratories
BSE: 500359 | NSE: RANBAXY | ISIN: INE015A01028 | Pharmaceuticals
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Chairman's Speech | Year : Dec '08 |
Dear Shareholders,
The year 2008 has been a significant one for Ranbaxy. The
path-breaking partnership between Ranbaxy and Daiichi Sankyo has been
recognised for its visionary and strategic intent and has opened up a
new paradigm for the future of the global pharmaceutical industry. This
combination has resulted in an innovator and generic powerhouse, which
now ranks among the top 15 pharmaceutical companies, globally. The
partnership will unlock significant and sustained operational and
strategic synergies, thereby elevating Ranbaxy onto a faster growth
trajectory.
The Energy of Synergy
Ranbaxy and Daiichi Sankyo share a common view on the nature of
fundamental changes underway in the dynamics of the industry. We
strongly believe that the future environment can be successfully
leveraged through a hybrid model, combining the capabilities of an
innovator and generics pharmaceutical company.
The partnership between Ranbaxy and Daiichi Sankyo has created a
powerful hybrid business model, with complementary strengths ranging
from excellence in new drug research & development to extensive reach
across global markets. There is tremendous growth potential for both
organisations which will be driven and realised in the form of
synergies across the front and back ends of the pharmaceuticals
business.
In November 2008, Daiichi Sankyo completed the acquisition of 63.92%
shares of Ranbaxy and in the process infused US $ 736 Mn into Ranbaxys
Balance Sheet. The current global business environment is under
significant financial strain owing to the turmoil and uncertainty of
the economic environment globally. Against this backdrop, Ranbaxy is in
a relatively stronger position to supplement its organic growth
momentum with inorganic growth opportunities.
Business Performance
Amidst a challenging business environment, Ranbaxy has achieved a
growth of 4% on its top line. This was supported by the Companys focus
on emerging markets, that contributed 54% to the business;
consolidation in the business in developed markets and continued
investment in building a high-value new product pipeline.
Russia, Ukraine, Brazil and India led the growth in the emerging
markets. The Company recorded a strong performance in these markets
that was higher than the industry averages. Amongst the developed
markets, Canada and Japan outperformed while Germany and France
delivered good results. For the first time, Ranbaxy launched Authorised
Generics, Omeprazole and Felodipine, in USA. On both these products, we
performed well and garnered good market positions.
The business in both emerging and developed markets was supported by
increased number of new product launches and continuous focus on key
emerging therapies.
On the innovation front, R&D saw a series of positive developments
during the year. We expanded our Drug Discovery & Development
collaboration model by successfully entering into a new collaboration
with Merck in the field of anti-infectives. In our GSK alliance, we
maintained steady progress during the year, filing an IND
(Investigational New Drug) application in India for Phase I trials on
the Respiratory molecule. Our Anti-Malaria combination molecule,
Arterolane, progressed well, having successfully completed Phase II
studies and obtained approval for Phase III studies in India. On the
generics side, we continue to drive a high value pipeline of
differentiated and niche products to achieve greater productivity at
the business end.
The year 2008 witnessed an unprecedented economic downturn across all
markets globally. The volatility and uncertainty in the financial
environment was exceptionally high and led to sharp fluctuation in
foreign currency rates. Since our business is spread widely across
multiple geographies and foreign currencies, the weakened and
fluctuating financial and Forex environment created a substantial
negative impact on our profitability for the year inspite of sustained
performance, at an operating level.
In addition, the US FDA issued warning letters on two of our dosage
form plants in India. As a precautionary measure, the US FDA also
imposed an import alert on these facilities, which impacted our
business performance in USA. There has however been a renewed and
concerted effort by us on the technical and regulatory front to resolve
these issues. The internal team along with a set of experts is engaged
with a high degree of focus and commitment towards implementing a
comprehensive plan of corrective actions. Our multi-pronged strategy
currently underway will also enable restore and safeguard the current
and future product portfolio in the US market.
Corporate Governance
Our strong Board with Independent Directors guides and works through
Corporate Governance Committees that focus on aspects like Audit,
Compensation, Science, Share transfer, Shareholder grievances etc. The
Board Committees regularly scrutinize the policies and proposals made
by the Operating Management and also provide an unbiased independent
assessment of the state of robustness of the business processes in
place. They also guide the management to continuously upgrade standards
and proactively address potential vulnerability areas.
Ranbaxy, in 2008, proactively adopted the latest financial guidelines
(AS-30) related with foreign currency instruments and harmonised its
financial reporting accordingly. We were amongst the earliest companies
in India to adopt these guidelines, ahead of time, thus aligning our
Company with the global reporting norms while maintaining high
standards of disclosure and complete transparency.
The Road Ahead
For the year 2009, Ranbaxy has a clear strategy to harness its growth
potential in emerging markets, rebuild the US business through a series
of actions on products and facilities; actualise significant revenue
upsides through First-to-File and Day-1 launches; strengthen the
product / therapeutic pipeline and look for M & A opportunities,
complementing our geographic and therapeutic basket. Our focus will be
to resolve regulatory compliance issues and continue to strengthen cGMP
across all locations. Besides this, Ranbaxy and Daiichi Sankyo will
identify key projects to realise synergies at both the front and back
ends of the business, although, there will be much to contend with,
considering mat the industry is projected to grow at around 5% in 2009.
Conclusion
Before closing my remarks, I would like to acknowledge the substantial
contribution made by the erstwhile Board in guiding Ranbaxy to its
current position of leadership. A special and sincere thanks to my
predecessor Chairman, Mr. Harpal Singh, who led the Board in the most
exemplary and professional manner. His natural style of heeding
business ethics, focusing on corporate governance and above all, taking
care of people, has strengthened the very foundation from which the
Company aspires to grow.
I also take this opportunity to welcome Mr. Takashi Shoda, Dr. Tsutomu
Une, Mr. Balinder Singh Dhillon, Dr. Anthony H. Wild, Mr. Rajesh V.
Shah, Mr. Akihiro Watanabe and Mr. Percy K. Shroff to the Board of
Ranbaxy. With an enriched, international and experienced Board, Ranbaxy
is truly set to establish itself as a research based international
pharmaceutical Company.
Ranbaxys strong multicultural work force has been the bedrock of the
Companys glorious past. I am confident that with the commitment and
passion of our people, we will shape a bright future for the
organisation.
On behalf of the Board, I would like to thank all our shareholders for
their continuous and unstinting support. I also look forward with
confidence, as before, to your support in the coming years.
With Best Wishes,
Malvinder Mohan Singh
Chairman, CEO & Managing Director
March 29,2009 |
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| Source : Religare Technova | |
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