Ranbaxy in the pink of health after drug discovery tie-up

The company made this announcement during trading hours today, 12 May 2008.

Meanwhile, the BSE Sensex was up 129.34 points, or 0.77%, to 16,866.41.

On BSE, 5.45 lakh shares were traded in the counter. The scrip had an average daily volume of 3.88 lakh shares in the past one quarter.

The stock hit a high of Rs 497 and a low of Rs 463.20 so far during the day. The stock had a 52-week high of Rs 501 on 21 April 2008 and the stock hit a 52-week low of Rs 299.90 on 22 January 2008.

The mid-cap scrip had underperformed the market over the past one month till 9 May 2008, gaining 4.17% compared to the Sensex`s return of 6.64%. It had outperformed the market in the past one quarter, rising gaining 22.80% compared to Sensex`s decline of 4.17%.

The company`s current equity is Rs 186.62 crore. Face value per share is Rs 5.

The current price of Rs 493.90 discounts its Q4 March 2008 annualised EPS of Rs 11.09, by a PE multiple of 44.54.

Ranbaxy Laboratories will carry out drug discovery and clinical developments, whereas Merck will take care of the development and commercialization of drugs. Under the agreement, Ranbaxy will be paid an undisclosed upfront sum and it is also eligible to receive significant royalties on worldwide net sales of any products commercialized under the agreement. The collaboration will begin this year with an initial term of five years and can be extended thereafter.

On 28 April 2008, Ranbaxy Laboratories (RLL) received final approval from the US Food and Drug Administration to manufacture and market cetirizine hydrochloride oral solution.

On 15 April 2008, UK`s second largest drugmaker, AstraZeneca Plc signed a settlement agreement in its Nexium patent infringement litigation against Ranbaxy.

On 8 April 2008, RLL received authorization from Ministry of Health and Labour Welfare, Japan for marketing the generic version of Amlodipine tablets 2.5 milligram & 5 milligram in Japan.

In February 2008, RLL received approval from the US Food and Drug Administration to manufacture and market cefuroxime axetil for oral suspension in United States.

RLL`s net profit declined 10.3% to Rs 103.42 crore on 0.1% fall in net sales to Rs 987.29 crore in Q1 March 2008 over Q1 March 2007.

Ranbaxy Laboratories is India`s largest drug maker by sales. It has manufacturing facilities in eight countries.