Generic version of 2 drugs by Dec '08: Ranbaxy

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Ranbaxy has announced a patent settlement relating to Imitrex with GSK Pharmacueticals . Ranbaxy will launch a generic version of Imitrex and Sumatriptan in December 2008. The pharma company will have a 180-day exclusivity for Sumatriptan.

Market size of Imitrex is around USD 1 billion. Ranbaxy's PAT guidance of 20-25% does not factor in Sumatriptan launch and may gain up to USD 100 million the launch during exclusivity.

Malvinder Singh , MD & CEO of Ranbaxy Laboratories said revenues will start flowing in from early 2009. Majority of the sales from generic Imitrex will come down as PAT.

Excerpts from CNBC-TV18's exclusive interview with Malvinder Singh:

 

Q: Take us through how big this opportunity could be and how much it could add to your PAT guidance that you have held out a couple of days back since this is not factored in it?

 

A: This is a billion dollar drug and we would be launching that post the settlement that we had with GSK in December 2008. We will have the exclusivity for a 180 days and we will be the first generic to get approval on this product.

 

Q: How much do you hope to garner in that exclusivity period and how much would flow to the bottomline given your expectations of pricing?

 

A: We have consistently done exceedingly well on our launches on the first-to-file (FTF) products on the Para IV opportunities, where we have consistently got more than 50% marketshare. We are quite hopeful that this would be another good product for us and this is now the fourth FTF product that we will be launching between 2008 and 2010. This is also the third settlement that we have done over the last many months. So this brings far greater visibility to our portfolio and pipeline for America and also more importantly a lot more certainty into our profits for the next three years.

 

Q: The estimate that you may gain up to a USD 100 million with the launch during the exclusivity period do you think that would be a fair figure?

 

A: I certainly am very optimistic about this product. I think we will do exceedingly well, we have the exclusivity, we have a firm timeline when we will launch. I am sure there would be different estimates in the market but this would certainly be a good product and I think whatever the sell is, the majority of that will come down as PAT.

 

So this product while it gets launched in December 2008, a significant amount of growth in terms of revenues and profits will also flow for the next five months in the beginning of 2009.

 

Q: Now that the news is out and confirmed, how does this impact your PAT guidance, are you looking to up that from the 20%-25% you have set out?

 

A: I do not want to change the guidance. But what I had said was that this was not a part of it because we were only getting it for a short while, which is only in December and therefore a significant amount of upswing of that will come in 2009 and a certain part of that will get added on in 2008. So yes, from that perspective, it could go up. But I think in terms of guidance, I would like to live it at between 20%-25% on the PAT, which was Rs 790 crore for 2007.