RANBAXY LABORATORIES LIMITED

Introduction
The Indian pharmaceutical industry currently tops the chart amongst India's
science-based industries with wide ranging capabilities in the complex field of
drug manufacture and technology. A highly organized sector, the Indian
pharmaceutical industry is estimated to be worth $ 4.5 billion, growing at about 8
to 9 percent annually. It ranks very high amongst all the third world countries, in
terms of technology, quality and the vast range of medicines that are manufactured.
It ranges from simple headache pills to sophisticated antibiotics and complex
cardiac compounds, almost every type of medicine is now made in the Indian
pharmaceutical industry. The Indian pharmaceutical sector is highly fragmented
with more than 20,000 registered units. It has expanded drastically in the last two
decades. The Pharmaceutical and Chemical industry in India is an extremely
fragmented market with severe price competition and government price control.
The Pharmaceutical industry in India meets around 70% of the country's demand
for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,
tablets, capsules, orals and injectibles. There are approximately 250 large units and
about 8000 Small Scale Units, which form the core of the pharmaceutical industry
in India (including 5 Central Public Sector Units). The Government has also played
a vital role in the development of the India Software Industry. In 1986, the Indian
government announced a new software policy which was designed to serve as a
catalyst for the software industry. This was followed in 1988 with the World
Market Policy and the establishment of the Software Technology Parks of India
(STP) scheme. In addition, to attract foreign direct investment, the Indian
Government permitted foreign equity of up to 100 percent and duty free import on
all inputs and products.

Mission & Vision

Ranbaxy's mission is ‘To become a Research-based International Pharmaceutical

Company’. The Company is driven by its vision to ‘Achieve significant business in
proprietary prescription products by 2012 with a strong presence in developed
markets’.

History of company
1961 – Company Incorporated. 1973 – Ranbaxy goes Public. A multipurpose
chemical plant is setup for the manufacture of API‟s at Mohali in India. 1977 –
Ranbaxy‟s first joint venture in Lagos (Nigeria) is setup. 1983 – A modern
dosage forms facility at Dewas (MP) in India goes on stream. 1985 – Ranbaxy
Research Foundation is established. Stancare, Ranbaxy‟s second pharmaceuticals
marketing division starts functioning. 1987 – Production start-up at the modern
APIs plant at Toansa (Punjab), makes Ranbaxy the country‟s largest
manufacturer of Antibiotics/Antibacterial. 1988 – Ranbaxy‟s Toansa‟s plant gets
US FDA approval. 1990 – Ranbaxy is granted its first US patent, for
Doxycyline. 1991 – New state-of-the-art facility for Cephalossporins set up at
Mohali. 1992 – Company enters into an agreement with Eli Lilly & Co of USA
for setting up a joint venture in India to market select Lilly products. 1993 –
Company enters into an agreement to setup a joint venture in China Ranbaxy
(Guangzhou China) Limited. Ranbaxy enunciates its corporate mission, „To
become a Reasearch based international Pharmaceuticals Company‟. 1994 – The
new Research centre in gurgaon becomes fully operational. Established regional
headquater in UK and USA. Ranbaxy‟s GDR listed in Luxemburg‟s Stock
Exchange. The fermentation pilot plant at Paonta Sahib is commissioned. 26
1995 – Acquisition of Ohm Laboratories. 1997 – Ranbaxy Lab Ltd. Crosses a
sales turnover figure of Rs. 10,000 million, with its export reaching an all time
high of the Rs. 5,000 million. 1998 – Ranbaxy enters USA, World‟s largest
Pharmaceutical market, with product under its own name. Ranbaxy filed its first
Investigational New Drug (IND) application with the Drugs Controller of India
for approval to conduct Phase I Clinical Trials. 1999 – Clinical trials for its NCE
commence. Bayer AG, Germany and Ranbaxy sign an agreement where Bayer
obtains exclusive development and worldwide marketing rights to an oral once
daily formulation of Ciprofloxacin, originally developed by Ranbaxy. 2000 –
Ranbaxy files second IND application in India. Ranbaxy acquires Bayer‟s
Generic business in Germany. Ranbaxy forays into Brazil, the largest
pharmaceutical market in South America. 2001 – Ranbaxy took a significant step
forward in Vietnam by initiating the setting up of a new manufacturing facility.
Ranbaxy USA crosses sales of US $ 100million, fastest growing company in US.
2002 – Ranbaxy files third IND application in India. Ranbaxy launched
Cefuroxime Axetil post approval from USFDA for 125mgmg, 250mg, 500mg
Tablets, first approval granted to any generic company for this product. 2003 –
Ranbaxy receives The Economic Times Award for Corporate Excellence for the
“The Company of the Year, 2002-2003”. Ranbaxy and Glaxo Smithkline Plc
(GSK) enter into a global alliance for drug discovery and development.
Ranbaxy‟s first NCE in the respiratory segment successfully completes Phase I
clinical trials and step into Phase II. Ranbaxy files fourth IND application in
India. Ranbaxy launched the first branded product Soltret (Isotretinoin) for 10mg,
20mg and 40mg capsules in USA. 27 2004 – Ranbaxy began operations in
France as a Top 10 generic company, after acquiring a wholly-owned subsidiary
RPG (Aventis) SA. The company joined the elite club of Billion Dollar
Companies achieving global sales of US $ 1bn (on MAT basis) in February 2004.
Ranbaxy made its Anti-retroviral (ARV) filling with the US FDA under US
President‟s Emergency Plan AIDS Relief (PEPFAR). RBx11160, an Anti-malarial
molecule being developed in collaboration with Medicines for Malaria Venture
(MMV) successfully completed Phase I studies. Subsequent to filling of an
Investigational New Drug (IND) application in UK and India. 2005 – Ranbaxy‟s
Antimalarial molecule successfully completed Proof of Concept Phase IIa studies
Ranbaxy launches operations in Canada Ranbaxy‟s joint venture with Nippon
Chemiphar in Japan (Nihon Pharmaceutical Industry Limited) launches –
Vogaseal for diabetes the first product of the joint venture. Ranbaxy acquires
generic product portfolio from EFARMES of Spain. Ranbaxy receives India‟s
first approval from USFDA for an Anti Retroviral (ARV) drug under US
Presidents Emergency Plan for AIDS Relief (PEPFAR) Ranbaxy opens its third
state of the art R&D facility in Gurgaon campus to focus on NCE discovery
research. H.E. Dr. A.P.J. Abdul Kalam, the President of India, inaugurated the
facility in Aug 05 2006 – Ranbaxy acquires Be Tabs pharmaceuticals, the 5th
largest generic company in South Africa for US $ 70mn. Ranbaxy successfully
invalidates Pfizer‟s „995 Lipitor US patent. Ranbaxy acquires unbranded generic
business of GSK in Italy and Spain. Ranbaxy launches First To File (FTF)
product, Smivastatin Tabalets 80mg with 180day market exclusivity in the US
Healthcare System. Ranbaxy enters strategic alliance with Zenotech. 2007 –
Ranbaxy enters new R&D agreement with GSK Ranbaxy Launches First To File
(FTF) product, Pravastatin Sodium Tabalets 80mg with 180day market
exclusivity in the US Healthcare System. 2008 – Ranbaxy redefines its business
model by bringing in Daiichi Sankyo Company Limited as a majority partner to
create strategic combination of an Innovator and Generic powerhouse. Ranbaxy
reaches settlement with on world‟s top two selling drugs Lipitor (Pfizer) and
Nexium (Astra Zeneca) 28 2009 – Daiichi Sankyo and Ranbaxy announce
reconstitution of Ranbaxy executive leadership. 2010 – Ranbaxy enters its
Golden Jubilee Year. Ranbaxy delivers quarterly sales of over US $500mn for
the first time.

Organization Structure
The Company’s business philosophy based on delivering value to its stakeholders
constantly inspires its people to innovate, achieve excellence and set new global
benchmarks. Driven by the passion of it’s around 14,000 strong multicultural
workforce comprising of over 50 nationalities, Ranbaxy continues to aggressively
pursue its mission ‘To become a Research-based International Pharmaceutical
Company’.

MISSION: to become a researched based international pharmaceutical company.

Vision 2012: achieve significant business in proprietory.prescription products by

2012 .with a strong presence in developed market .

Ranbaxy views its R&D capabilities as a vital component of its business strategy
that will provide a sustainable, long-term competitive advantage. The Company
has a pool of over 1,200 R&D personnel engaged in path-breaking research.
Ranbaxy is among the few Indian pharmaceutical companies in India to have
started its research program in the late 70's, in support of its global ambitions. A
first-of-its-kind world class R&D centre was commissioned in 1994. Today, the
Company has multi-disciplinary R&D centers at Gurgaon, in India, with dedicated
facilities for generics research and innovative research. The R&D environment
reflects its commitment to be a leader in the generics space offering value added
formulations and development of NDA/ANDAs, based on its Novel Drug Delivery
System (NDDS) research capability. Ranbaxy’s first significant international
success using the NDDS technology platform came in September 1999, when the
Company out-licensed its first once-a-day formulation to a multinational company.

In July 2010, Ranbaxy’s New Drug Discovery Research (NDDR) was transferred
to Daiichi Sankyo India Pharma Private Limited as part of the strategy to
strengthen the global Research and Development structure of the Daiichi Sankyo
Group. While NDDR will now become an integral part of Daiichi Sankyo Life
Science Research Center in India, based in Gurgaon, Ranbaxy will continue to
independently develop and later commercialise the anti-malarial new drug,
Arterolane + PQP, which is currently in Phase III trials. Ranbaxy will also explore
the further development of late stage programs developed by NDDR in the last few
years, including the development programs in the GSK collaboration. Within
Ranbaxy, R&D of Generics will now get a sharper focus, as the Company is
increasingly working on more complex and specialist areas.

AREAS COVERED OF THE BUSINESS:

Activity:

- Licensing & Business Development

- Manufacturing

Markets Covered
a. HeadQuarter:

b. Continent(s) active: Europe , North America , Asia , Africa , South America ,

Near/Middle East

c. Countries active3

Product / Technology type(s) covered:

- Generics

- OTC (over the counter drugs)

- Pharmaceuticals / Therapeutics

- Technology

Profit after Tax (PAT) - Rs in Million

Sales (Rs in Millions)

Though the Sales of the company had been on a constant increase over the last 10
years, there was a sudden fall in the Profit After Tax (PAT-Profit available to the
Equity holders and the organization itself) in 2005, 2006 and 2008. The key reason
for the sudden fall in PAT can be attributed to the sudden hike in the R&D
expenditure in 2005.

In 2008, there was an unprecedented economic downturn across all markets

globally and the fluctuating financial and Forex environment created a substantial
negative impact on profitability. Further prohibition on drugs by the US Food and
Drug Administration and pricing stress has acted as a wet blanket in the periodical
figures of the company. The trend line shows the reason behind the fall in
profitability.
Conclusion:
Today Cefexime formula is 17years old, but still its growing at a rate of 20%. This
means that the market is very huge. There are very few products for cefexime
formula in market. Today Cipla is on top in market but their staff and customer
treatment is of below average quality, thus there is a tremendous scope for
Ranbaxy to capitalize on customer relation because today‟s competition is not only
on product but also on maintaining customer relation, it is not only selling product
but how you treat customers pre-sales and post-sales. Skifi is a new comer in the
market but has its own USP of being mouth dissolving and in mangor flavor which
is first in its kind and its price is also comparatively less than others. It cost Rs.
7.50 per Revital (strip) 20% Revital (bt) 11% Riconia 15% Supradin 18% Zincovit
22% Superactive 14% South Delhi Company's sales in MultiVitamin Skifi 4%
Taxim-O 27% Zifi 30% Ceftas 21% Mahacef 18% South Delhi Company's sales in
AntiBiotic (cefexime) 44 tablet to a retailor. So though being a new comer to a
market we can see the scope of huge demand for the product. By overall analysis,
we could company name in order of their performance as to satisfy customer (best
coming on top), it would be: 1. Ranbaxy 2. FDC 3. Torrent 4. Lupin 5. Cipla 6.
Sun Pharma 7. Zydus Cadilla