A SUMMER TRAINING PROJECT REPORT

ON

SALES AND MARKETING

AT

TOWARDS THE PARTIAL FULLFILMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE
M.B.A: SESSION-2007-2009

SITAPURA, JAIPUR
AFFILIATED TO RAJASTHAN TECHNICAL
UNIVERSITY, KOTA

SUBMITTED TO:
MR.MUKESH MACHRA
FACULTY MEMBER
IIMS, JAIPUR

SUBMITTED BY:
CHETAN KUMAR
KUMAWAT
M.B.A- PART II
SEM 3rd

DECLARATION
I hereby declare that this project report titled SALES AND
MARKETING has been successfully completed at RANBAXY LABORATRIES
LTD. towards the partial fulfillment of the requirement for the award of the degree
Master of Business Administration (FINANCE)from Institute of Information
& Management Science, affiliated to Rajasthan Technical University. This is an
original manuscript developed by me and has not been furnished from any source
thereof, has not formed the basis for the award of any degree, diploma or any such
titles by this institute or any other universities.

DATE:
LOCATION:

CHETAN KR. KUMAWAT

ACKNOWLEDGEMENT

It gives me great pleasure to express my boundless sense of gratitude to

each and every person who directly or indirectly helped me with hand and hand in
completing this humble piece of work.
First, of all I would like to thank Vikas Tak (Assistant Sales Manager) under
whose supervision and guidance this report was completed.
I convey my special thanks to, Mr. S.S.Vaishnav, Director at Institute Of
Information & Management Sciences affiliated to Rajasthan Technical University for
rendering valuable support. I am also very grateful to the management of my college
where I have been studying, for allowing me to do the course and project.
I specially remember and extend my humble words of thanks to my internal
guide Mr. Mukesh Machra for her guidance.
I am also thankful to my parents, classmates and friends who were in some
or the other way helpful to me in successfully completing this research study.

INDEX
CORPORATE PROFILE
R&D
VISION AND ASPIRATIONS
CEOS MESSAGE
BOARD OF DIRECTORS
EXECUTIVE TEAM
WORLD-WIDE OPERATIONS
RANBAXY IN INDIA
PRODUCTS OF RANBAXY
MANAGEMENT TRAINEE PROGRAMME
BALANCE-SHEET
PROFIT AND LOSS ACCOUNT
TEN YEARS AT A GLANCE
EVENTS OF COMPANY
INFORMATION OF STOCK MARKET
LATEST NEWS
CORPORATE LOGO
FINAL MISSSION AND VALUES
ANTI MALARIA PROTECT
ANTI HIV/AIDS PRTECT
HISTORY OF RANBAXY
ACQUIZATION OF RANBAXY
CONCLUSION
BIBLIOGRAPHY

Corporate Profile
Ranbaxy Laboratories Limited, India's largest pharmaceutical
company,
is
an
integrated,
research
based,
international
pharmaceutical company, producing a wide range of quality, affordable
generic medicines, trusted by healthcare professionals and patients
across geographies. The Company is ranked amongst the top ten
global generic companies and has a presence in 23 of the top 25
pharma markets of the world. The Company with a global footprint in
49 countries, world-class manufacturing facilities in 11 and a diverse
product portfolio, is rapidly moving towards global leadership, riding on
its success in the worlds emerging and developed markets.

Financials
Ranbaxy was incorporated in 1961 and went public in 1973. For
the year 2007, the Company's Global Sales at US$ 1,619 Mn reflected
a growth of 21%. Profit after Tax at US$ 190 Mn registered an increase
of 67% over the previous year.
The Company has a balanced mix of revenues from developed
and emerging markets and is well positioned to leverage the growth
potential offered by these markets. For the year 2007, North America,
the Company's largest market contributed sales of US$ 419 Mn,
contributing 26% of total sales followed by Europe garnering US$ 365
Mn. The Companys business in Asia was led by a strong performance
in India that clocked sales of US$ 301 Mn with market leadership
backed by its strong brand-building skills.

Strategy
Ranbaxy is focussed on increasing the momentum in the
generics business in its key markets through organic and inorganic
growth routes. It continues to evaluate acquisition opportunities in
India, emerging and developed markets to accentuate its business and
competitiveness. The Companys growth is well spread across
geographies with near equal focus on developed and emerging
markets. Ranbaxy has entered into new speciality therapeutic
segments like Bio-similars, Oncology, Peptides and Limuses. These
new growth areas will add significant depth to its existing product
pipeline.

R&D
Ranbaxy views its R&D capabilities as a vital component of its
business strategy that will provide the company with a sustainable,
long-term competitive advantage. The Company today has a pool of
over 1,200 scientists engaged in path-breaking research.
Ranbaxy is among the few Indian pharmaceutical companies in
India to have initiated its research program in the late 70s. To support
its global ambition, a first of its kind world class R&D centre was
commissioned in 1994. Today, the Companys multi-disciplinary R&D
centre at Gurgaon, in India, houses dedicated facilities for generics
research and innovative research. The Companys robust R&D
environment for both drug discovery & development reflects the
Companys commitment to be a leader in the generics space and offer
value added formulations based on its Novel Drug Delivery System
(NDDS) and New Chemical Entity (NCE) research outcomes.
The new drug research areas at Ranbaxy include anti-infectives,
inflammatory / respiratory, metabolic diseases, oncology, urology and
anti-malaria. Presently, the Company has 8-10 programs comprising
one anti-malaria molecule in Phase-II clinical trials. The Company has
two programs in Phase I and the remaining in the pre-clinical stage.
This includes a collaborative research program with GSK.
The company's NDDS focus is mainly on the development of
NDA/ANDAs of oral controlled- release products for the regulated
markets. The Companys first significant international success using
the NDDS technology platform came in September 1999, when
Ranbaxy out-licensed its first once-a-day formulation to a multinational
company.

Vision & Aspirations

The Company is driven by its vision to achieve significant
business in proprietary prescription products by 2012 with a strong
presence in developed markets. It aspires to be amongst the Top 5
global generic players and aims at achieving global sales of US $5 Bn
by 2012.

People
The Companys business philosophy based on delivering value to
its stakeholders constantly inspires its people to innovate, achieve
excellence and set new global benchmarks. Driven by its vision to
become a global leader the Company reinvents itself to achieve
sustained growth and leadership.
Driven by the passion of its over 12,000 strong multicultural
workforce comprising 50 nationalities, Ranbaxy continues to
aggressively pursue its mission to become a Research-based
International Pharmaceutical Company and attain a true global
leadership position.

CEO's Message
The Indian pharmaceutical industry is at the
center stage in the global pharmaceutical arena and
Ranbaxy is at the forefront in delivering the India
centric advantages to the advanced and developing
countries of the world.
From a small domestic company at inception in late 60s,
Ranbaxy has grown formidably to be an integrated, research based,
international pharmaceutical company with global sales in excess
of one billion dollar , as envisioned by the Chief architect and visionary
of today's Ranbaxy, Late Dr Parvinder Singh, Chairman and Managing
Director, in the early 90's.
It is with the unwavering ' dedication ' and the ' will to win ' of
Team Ranbaxy across the globe that we have traversed this journey so
far.
We are committed to provide quality generics at affordable prices
to the patients worldwide with a view to help bring down the
healthcare costs. We are confident that our efforts would see the
Company grow from strength to strength in the global generic space in
the years to come. Whilst we continue to enhance the momentum of
our generics business in over 125 markets, we are also accelerating
our drug discovery program through collaborations and alliances .
As we move ahead we are determined to capitalize on the new
opportunities based on our strong fundamentals of innovation,
entrepreneurship and aggressive marketing. We remain committed to
enhancing shareholder value as we actively pursue our strategy of
growth through organic and inorganic means.Today, we are amongst
the Top 10 global generic companies; we are well placed to realize our
aspirations of being amongst the top 5 generic companies and attain a
size of US$ 5 Bn by 2012. As we step into the next phase, we are
driven by our ambition, willing to invest in the growth of our people
and business, marching towards the new horizon of global leadership.
Mr. Malvinder Mohan Singh
CEO & Managing Director

Board of Directors

At the helm of the entire operations is the experience and able direction of the people who make it all
happen. Ranbaxy acknowledges their inspiring stewardship and indefatigable work.

Board of Directors
Left to Right : Mr Ramesh L Adige, Mr Sunil Godhwani, Dr P S Joshi,
Mr Vivek Bharat Ram,
Dr Brian W Tempest, Mr Gurcharan Das, Mr Atul Sobti, Mr Harpal
Singh, Mr Malvinder Mohan Singh,
Mr Surendra Daulet-Singh, Mr Ravi Mehrotra, Mr Shivinder Mohan
Singh, Mr Vinay K Kaul, Mr Vivek Mehra

Mr. Harpal Singh, Non-executive

Chairman
Dr. Brian W. Tempest
Mr. Malvinder Mohan Singh
Mr. Atul Sobti
Mr. Ramesh L. Adige
Mr. Vinay. K. Kaul
Mr. Shivinder Mohan Singh
Dr. P. S. Joshi
Mr. Surendera Daulet-Singh
Mr. Vivek Bharat Ram
Mr. Vivek Mehra
Mr. Gurcharan Das
Mr. Ravi Mehrotra
Mr. Sunil Godhwani

Executive Team
The Executive Committee is an apex body at Ranbaxy, that oversees
Company's global functioning. The group deliberates on important
Company issues steering it in the right direction. The Committee
ensures that all decisions are taken in the best interest of the
organisation. This forum brings in different perspectives on a subject.
Issues are discussed, analysed and concluded through exchange of
ideas, reflecting the Company's philosophy of participative management.
It also facilitates the Company's compliance with the best standards of
Corporate Governance.

Mr. Malvinder
Mohan Singh
CEO & Managing
Director

Mr. Atul Sobti

Chief Operating
Officer

Mr. Ramesh L.
Adige
Executive Director,
Corporate Affairs &
Global Corporate
Communications

Mr. Dipak Chattaraj

President Corporate
Development

Dr. Himadri Sen

President R&D
(Generics & NDDS)

Dr. Pradip
Bhatnagar
Senior Vice President
- New Drug Discover
Research

Mr. Jay Deshmukh

Senior Vice President
- Intellectual Property

Mr. Satish Chawla

Vice President Global Internal Audit

Mr. Bhagwat
Yagnik
Vice President Global Human
Resources

Worldwide Operations
Global Pharma Companies are experiencing an ever changing
landscape ripe with challenges and opportunities. In this challenging
environment Ranbaxy is enhancing its reach leveraging its competitive
advantages to become a top global player.
Driven by innovation and speed to market we focus on delivering
world-class generics at an affordable price. Our unwavering
determination to achieve excellence leads us to new global
benchmarks. Our people have consistently risen above all challenges
maximized opportunities and positioned Ranbaxy as a leader in the
global generics space.
Ranbaxys global footprint extends to 49 countries embracing
different locales and cultures to form a family of 51 nationalities with
an intellectual pool of some of the best minds in the world.

Africa

Asia Pacific

CIS

Europe

Global API

Global
Consumer
Healthcare

India

Latin America

Middle East and

Sri Lanka

North America

India

An introduction to Ranbaxy in India

Ranbaxy is one of the leading pharma Companies in India commanding a
market share of 5.07%. (Source : ORG-IMS, March, 2007). The Company
has clocked sales of USD 286 Mn (2006) registering a growth of over
17%. Growing ahead of the market the Company has enhanced its
competitive position in the domestic market through its focused approach.
The Companys business has been realigned to its customer groups and
investments have been made in high growth segments. These efforts
have resulted in strengthening its Chronic franchise (Life Style led) as well
as has reinforced its leading position in the Acute segment.
In the NDDS segment, Ranbaxy is the market leader with 7.9% market
share and its NDDS product portfolio contributes to about 9% of its total
turnover. Its product portfolio spans across Acute & Chronic Business
covering Anti-infectives, Nutritionals, Gastro-intestinals, Pain Management
( Acute) Cardiovasculars, Dermatologicals, Central Nervous Systems

(Chronic)segments.
Companys India operations are a dominant force in a number of
participating therapeutic segments, for example Anti-infectives, Statins,
Dermatology and Pain Management Operations are structured into 9
Strategic Business Units. A publicly listed company, Ranbaxy India is also
a member of IPA (Indian Pharmaceutical Alliance) & OPPI (Organization of
Pharmaceutical Producers of India).
Amongst the pharmaceutical companies in India, Ranbaxy has the largest
R&D budget with an R&D spend of over US $ 100Mn
Ranbaxy views its R&D capabilities as a vital component of its business
strategy that will provide the company with a sustainable, long-term
competitive advantage. The company today has a pool of 1,200 scientists
who are engaged in path-breaking research.
The robust R&D environment within the company for both drug discovery
& development and for generics is designed to bring into sharper focus,
the unique needs of both equally. Ranbaxy's endeavour is to be a leader
in the generics space and also to build a strong proprietary prescriptions
business based on the Company's NDDS and NCE (New Chemical Entity)
research outcomes.

Our Key Strengths

Leadership in Novel Drug Delivery System (NDDS) products, which
offer value-added differentiation over conventional products. Key
brands include Cifran OD (Ciprofloxacin), Zanocin OD (Ofloxacin) &
Sporidex AF (Cephalexin)
Strong brand building capabilities, reflected in the fact that 20
brands feature in the Top-300 brands of the Industry list. The
leading 5 brands are Sporidex (Cephalexin), Cifran (Ciprofloxacin),
Mox (Amoxycillin), Zanocin (Ofloxacin) & Volini (Diclofenac)
A well-built customer interface, with one of the highest customer
coverage across India, and an excellent franchise with both Generalists
& Specialists. This is proven by Ranbaxy Indias Corporate Image
being perceived as Best-in-Class by customers (source: AC Nielsen

ORG MARG Report, June 2004)

Great emphasis is placed on Knowledge Management and Medicomarketing initiatives such as Advisory Board Meetings, Post
Marketing Surveillance Studies and Continuous Medical Education
programs. These have resulted in an excellent customer relationship
with the medical fraternity. More than 2000 interface programs
(Symposia, CMEs) are conducted and about 20 Clinical Papers
published annually
With a futuristic approach, the India operations attempts to capitalize
on the fast- emerging, high-growth segments with innovative products
and services:
- Biological formulations such as Verorab (Rabies Vaccine) and
Vaxigrip (Flu Vaccine), which require competencies to propagate the
newer concepts in the market place. These products are being inlicensed or taken on Co-promotion from Sanofi Pastuer
- High end anti-infectives such as Cilanem (Imipenem+Cilastatin) &
Faronem (Faropenem) have been launched for the first time in
India. Ranbaxy is championing the concept of Penems/
Carbapenmens , locally
Dry Power & Metered Dose Inhalers have been launched in the
Respiratory segment. All Metered Dose Inhalers are HFA based
formulations, environment friendly inhalers. It is for the first time
in India, that a company has launched its entire HFA propellant
based MDI range. The worlds first novel product, Osovair
(Formoterol + Ciclesonide) inhalation capsules has been introduced
in the Indian market.
- Anti-diabetic franchise has been further consolidated with
launch of Insucare (Insulin) with an innovative delivery
mechanism - Controlled Insulin Logistics This ensures that the
cold chain, vital for product efficacy, is maintained.
- A slew of products have been launched in the Dermatology
segment: Suncross (Sunscreen lotion), Sotret (Isotretnoin), Eflora
(Eflornithine)

At a Glance
Team Size About 2,500 persons
Overall
US $ 6.2 Bn
Market Size (Source: IMS-ORG MAT March, 2007)
Ranbaxy
5.07%

Nepal
Contact
Mr. Sanjeev Dani
Senior Vice President & Regional
Director - Asia & CIS
Ranbaxy Laboratories Limited
Corporate Office, Plot 90, Sector
32,
Gurgaon -122001 (Haryana),
INDIA
Ph: +91- 124- 4135000
Email: mukta.v@ranbaxy.com

Products
Using the finest R&D and Manufacturing facilities, Ranbaxy
Laboratories
Limited
manufacture
and
markets
generic
pharmaceuticals, value added generic pharmaceuticals, branded
generics, active Pharmaceuticals (API) and intermediates.
The Company remains focused on ascending the value chain
in the marketing of pharmaceutical substances and is determined to
bring in increased revenues from dosage forms sales.
Ranbaxy's diverse product basket of over 5,000 SKUs
available in over 125 countries worldwide, encompasses a wide
therapeutic mix covering a majority of the chronic and acute
segments. Healthcare trends project that the chronic treatment
segments will outpace the acute treatment segments, primarily driven
by a growing aging population and dominance of lifestyle diseases. Our
robust performance in Cardiovasculars, Central Nervous System,
Respiratory, Dermatology, Orthopedics, Nutritionals and Urology
segments, clearly indicates that the Company has strengthened its
presence in the fast-growing chronic and lifestyle disease segments.
Ranbaxy's top 20 products, ranging from Anti-infectives to
Dermatologicals, account for revenues of over US $ 600 Mn.
Top Ten Molecules
Simvastatin
Amoxy+Clav Potas Com
Amoxycillin
Ciprofloxacin
Isotretinon
Cephalexin
Ketorolac Tromethamine
Cefaclor
Clarithromycin
Cefuroxime Axetil

Life at Ranbaxy
A career at Ranbaxy means an opportunity for ample learning &
growth. It offers avenues to work across the globe along side the
finest minds. The Company offers a challenging assignment, a world
class working environment, professional management, competitive
salaries,
stock
options
along
with
exceptional
rewards.
If you have an appetite for challenges, we have an exciting
career for you

Opportunities
The global spread of Ranbaxy and the blazing growth in business
provides ample opportunities for our employees to build careers in
various fields. Opportunities have never been a constraint for the
deserving. We believe in employee growth that goes beyond vertical
movements and change in designations. Potential and performance are
the pillars of career progression at Ranbaxy. A robust development
process supports this.
Our managers will generally have the opportunity to live and
work in different countries; such international experience will help
them better understand our complex business and grow both
personally and professionally.

Salary and Benefits

Salaries and other benefits in Ranbaxy are comparable with the
best in the industry and one can expect to be rewarded highly if the
performance is consistently outstanding.
Group Life Insurance, Medical Insurance and Pension plans are a
few examples of the benefits we provide to our employees and their
dependents with adequate financial protection on long term basis.

Stock-Ownership
The ownership in business is fundamental to personal
progression, we encourage you to take ownership of your investments.
Stock ownership is a part of the compensation for our managers
early in their career at Ranbaxy: you will see the business results
straight in your pay slip!

Work Environment
Autonomy and entrepreneurship: We believe in providing
autonomy to our employees and let them discover their potential while
working for Ranbaxy. Individuals are given responsibility quite early in
their careers and their actions impact the business. This has helped in
fostering a culture of entrepreneurship within the organisation that we
are extremely proud of.
Creativity and Innovation: Supporting this entrepreneurial
culture is the spirit of innovation and creativity. You do not need to be
part of Research and Development to bring about innovations.
Creativity is promoted in every part of the organisation. Genuine

mistakes are considered as part of learning and calculated risk taking

is encouraged.
Diversity: Ranbaxy is an equal opportunity employer and that
gets reflected in the rich and diverse workforce. This diversity provides
us the strength to reach out to the world and touch the lives of millions
of people in different parts of the globe. We value the diversity that
exists within our employees and leverage this to bring about synergy
within the organisation. Ranbaxy workforce of over 11,000 people is
represented by 51 nationalities with approximately 26% constituting
foreign nationals.

Employee Development
Employees represent what a company stands for. The value an
organisation produces is unequivocally linked to collective efforts of its
people. We at Ranbaxy realize that the growth of the company can be
sustained through the continuous development of people who
contribute to the business success. Hence we focus our attention to
harness the innate potential each individual brings to the organisation.
Identifying Potential
While the initial years in the career of a Ranbaxy manager is used in
developing the professional skills, the focus changes as a person
moves to the middle management level. Here leadership potential
becomes critical. We have a robust process of identifying potential in
individuals. Each of our middle level managers goes through a process
that clearly identifies their strengths, development areas and
aspirations for the future. This is supported by a structured process of
development, which includes movement within the organisation.
Building Leaders Across the Organisation
We believe that every individual can be a leader and leadership
is not a domain of the people at the top. Accordingly the Ranbaxy
Leadership Model focuses on strengthening the leadership qualities
across the organisation and quite early in the individual's career. The
Model prepares individuals first to deal with 'the self' and then with
'others'. As the manager matures, the model facilitates the individual
to become a business leader by understanding and appreciating the
multiple facets of business. Finally managers of Ranbaxy are prepared

to lead and drive change - an ultimate test of a person's leadership

skills
In addition, as an employee of Ranbaxy, you can expect to be
trained in the latest developments in your respective field of functional
excellence. Our Strategic Learning Partners support the development
initiatives at Ranbaxy and are themselves leading names / institutions
in the world of people development

Drug Discovery & Clinical Development - GlaxoSmithKline

Cipro OD Technology Out Licensed - Bayer
Statin molecule out licensed to PPD, USA

Our-Focus
New Drug Discovery Research(NDDR)
Metabolic Diseases
Respiratory/ Inflammatory
Anti-Infectives
Oncology
We seek partners for Co-development in the above therapeutic areas for collaboration with
companies / universities / research institutions to undertake a
discovery program starting from the conceptual stage.
Novel Drug Delivery Systems (NDDS)
Our focus is on oral controlled release delivery systems
NDDS Technologies developed are on the following platforms
Multiparticulate
Modified matrix
Gastroretentive

Aerogel

Pharma-Research
For Value Added Dosage Forms

Current
Soft gel
Dispersible tabs / chewable tabs
Taste masking
Gels
Effervescent

We seek opportunities for

Joint research projects for co - development of Novel Drug Delivery
System-based products.
Report 2007

Emerging markets, niche and specialty segments, First-to-File (FTF)

products in the US, the NDDR de-merger...indeed, there's a lot new on
Ranbaxy's horizon this year. And while change is already underway, this
is just the beginning, with several new initiatives lined up for the
immediate future.

As your Company pushes the frontiers of

possibility, both horizontally and vertically, growth
through scientific breakthroughs and strategic
initiatives is just around the corner. The clear
aspiration is to achieve global sales of US $ 5 Bn
by 2012 and position Ranbaxy among the top 5
global generic companies.

BALANCE SHEET

P & L Account

Ten Years At A Glance

Events
AGM

47th ANNUAL GENERAL MEETING

Date:

May 30, 2008

Time:

11:00 AM

Venue: at Auditorium of the National Institute of Pharmaceutical Education And

Research (NIPER) Sector-67, S.A.S. Nagar (Mohali) - 160062, Punjab

Investors-Meet

Merrill Lynch 12th India Investor Conference - February 2008, New Delhi

Earnings-Call

Q3 2008 - Earnings Call

Ranbaxy Stock
Listing Of Securities
Shares Related Data
Share Holding Pattern
Market Price Data
Depository Services

Listing of Securities
The Equity Shares of the company are listed on the Bombay Stock
Exchange Ltd. (Traded in 'A' Group) and The National Stock Exchange
of India Ltd. (included in Nifty). Global Depository Shares are listed on
The Luxembourg Stock Exchange.
S.No.

Name of stock Exchange(s)

Stock Code

Bombay Stock Exchange Ltd.

500359

National Stock Exchange of India Ltd

RANBAXY

Luxemburg Stock Exchange (Global

Depository Shares)

Shares Related Data

Share capital:

420,369,753 Equity Shares of Rs. 5/- each.

Dividend:
Year 2007:
19
98

199 200 200 200 200 200 200 200 200

9
0
1
2
3
4
5
6
7
(Rs. per share)

Interim

2nd Interim -

2.2
2.50
5

5.00

7.50

5.00 5.00 5.00 2.50 2.50 2.50

-

10.0 10.0 12.0 12.0

6.00
0
0
0
0

6.00

Final

2.7
5

Total

5.0
10.0 15.0 17.0 17.0
7.50 7.50
8.50 8.50 8.50
0
0
0
0
0

6.00

Statement Showing Shareholding Pattern

Market Price Data

Last 12 month's 'High' / 'Low' rates quoted at
Bombay/National Stock Exchanges:
Month
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08

Bombay Stock National Stock

Exchange
Exchange
(High) (Low) (High) (Low)
490.00 376.00 457.85 370.05
428.50 385.00 449.95 360.40
433.00 299.90 432.95 297.05
458.00 349.95 457.25 349.40
473.25 418.00 473.80 418.00
501.00 436.00 502.00 435.90
534.55 456.95 535.00 459.50
613.70 492.35 660.00 456.25

Jul-08
Aug-08
Sep-08

556.50 402.50 549.55 403.10

542.45 448.80 542.00 484.00
513.00 241.25 514.00 240.30

Oct-08
For SHARE TRANSFER AGENT

306.00 164.30 306.80 163.50

M/s. Alankit Assignments Limited

2E/8, 1st Floor,
Blaze Flash House
Jhandewalan Extension,
New Delhi 110 055
For SECRETARIAL DEPARTMENT OF THE COMPANY
Ranbaxy Laboratories Ltd.
Plot No. 90, Sector 32
Gurgaon - 122001 (Haryana), India
Ph: +91-124-5135000
Fax: +91-124-5106490
Email: secretarial@ranbaxy.com

Latest News
November 2008
Day : 7
RANBAXY AND DAIICHI SANKYO SUCCESSFULLY COMPLETE
LANDMARK DEAL

October 2008
Day : 31
Q3 2008 GLOBAL SALES AT RS 18,884 MN (+ 14%); EMERGING
MARKETS DELIVER STRONG GROWTH OF 20%; DEVELOPED MARKETS
GROW BY 9%
Day : 20
RANBAXY AND DAIICHI SANKYO MOVE FORWARD TOWARD
Day : 16
RANBAXY ACHIEVES A SIGNIFICANT LANDMARK IN ANTI-MALARIAL
RESEARCH
Day : 13
RANBAXY ACHIEVES ANOTHER SIGNIFICANT MILESTONE IN GSK
RESEARCH COLLABORATION

September 2008
Day : 18
RANBAXY LABORATORIES LTD., RETAINS FORMER NEW YORK CITY
MAYOR RUDY GIULIANI TO LEAD TEAM IN RESOLUTION OF ISSUES
RAISED BY U. S. FOOD & DRUG ADMINISTRATION
Day : 17
RANBAXY STATEMENT ON FDA LETTERS

August 2008
Day : 1
RANBAXY 'S ARV DRUG, ABACAVIR 300MG TABLETS, INCLUDED IN
WHO'S PRE-QUALIFICATION LIST

July 2008
Day : 29
Q2 2008 GLOBAL SALES AT USD 440 MN (RS 18,296 MN), + 11%
Day : 28
RANBAXY LAUNCHES OMEPRAZOLE 40 MG CAPSULES
Check out the latest news and press releases capturing Ranbaxy's
accomplishments and happenings and events around the world.

November 2008
Day : 7
RANBAXY AND DAIICHI SANKYO SUCCESSFULLY COMPLETE
LANDMARK DEAL

October 2008
Day : 31
Q3 2008 GLOBAL SALES AT RS 18,884 MN (+ 14%); EMERGING
MARKETS DELIVER STRONG GROWTH OF 20%; DEVELOPED MARKETS
GROW BY 9%
Day : 20
RANBAXY AND DAIICHI SANKYO MOVE FORWARD TOWARD
Day : 16
RANBAXY ACHIEVES A SIGNIFICANT LANDMARK IN ANTI-MALARIAL
RESEARCH
Day : 13
RANBAXY ACHIEVES ANOTHER SIGNIFICANT MILESTONE IN GSK
RESEARCH COLLABORATION

September 2008
Day : 18
RANBAXY LABORATORIES LTD., RETAINS FORMER NEW YORK CITY
MAYOR RUDY GIULIANI TO LEAD TEAM IN RESOLUTION OF ISSUES
RAISED BY U. S. FOOD & DRUG ADMINISTRATION
Day : 17
RANBAXY STATEMENT ON FDA LETTERS

August 2008
Day : 1
RANBAXY 'S ARV DRUG, ABACAVIR 300MG TABLETS, INCLUDED IN
WHO'S PRE-QUALIFICATION LIST

July 2008

Day : 29
Q2 2008 GLOBAL SALES AT USD 440 MN (RS 18,296 MN), + 11%
Day : 28
RANBAXY LAUNCHES OMEPRAZOLE 40 MG CAPSULES
Day : 23
RANBAXY LAUNCHES GENERIC AMLODIPINE TABLETS ON DAY-1 IN
JAPAN
Day : 22
RANBAXY WINS UK SFO CASE
Day : 17
DAIICHI SANKYO AND RANBAXY CONFIRM DEAL IS BINDING AND
FINAL
Day : 14
PRESS STATEMENT

June 2008
Day : 25
RANBAXY GAINS TENTATIVE APPROVAL TO MANUFACTURE AND
MARKET VALGANCICLOVIR HYDROCHLORIDE TABLETS
Day : 18
RANBAXY AND PFIZER SETTLE LIPITOR LITIGATION WORLDWIDE
Day : 11
RANBAXY TO BRING IN DAIICHI SANKYO COMPANY LIMITED AS
MAJORITY PARTNER

May 2008
Day : 28
FULL FEDERAL COURT AFFIRMS THE AUSTRALIAN FEDERAL COURTS
DECISION IN FAVOR OF RANBAXY ON PFIZERS ATORVASTATIN
PATENT ON APPEAL

Day : 21
RANBAXY STRENGTHENS PRESENCE IN MIDDLE EAST REGION
Day : 12
RANBAXY & MERCK SIGN ANTI-INFECTIVE DRUG DISCOVERY AND
DEVELOPMENT AGREEMENT

April 2008
Day : 25
RANBAXY RECEIVES FINAL US FDA APPROVAL TO MANUFACTURE AND
MARKET CETIRIZINE HYDROCHLORIDE ORAL SOLUTION
Day : 22
RANBAXY AND ORCHID ANNOUNCE STRATEGIC BUSINESS ALLIANCE
Q1 2008 GLOBAL SALES AT USD 409 MN (RS 16,231 MN), + 15%
Day : 15
RANBAXY AND ASTRAZENECA REACH AGREEMENT IN ESOMEPRAZOLE
PATENT LITIGATION
Day : 9
RANBAXY AND DBT COLLABORATE IN THE AREA OF NDDR
Day : 8
RANBAXY BECOMES FIRST FOREIGN GENERIC COMPANY TO DEVELOP
A GENERIC PRODUCT INDEPENDENTLY OUTSIDE JAPAN AND RECEIVE
AUTHORISATION FROM MHLW - JAPAN
Day : 3
RANBAXY LAUNCHES WORLDS FIRST BIO-GENERIC RECOMBINANT
INJECTIBLE FOR THE TREATMENT OF OSTEOPOROSIS IN INDIA

March 2008
Day : 28
RANBAXY ANNUAL AUDITED RESULTS FOR YEAR 2007

Day : 18
RANBAXY TO INTRODUCE INERSAN BRAND IN INDIA AND NEPAL

February 2008
Day : 19
RANBAXY BOARD CLEARS SCHEME OF DE-MERGER OF NEW DRUG
DISCOVERY RESEARCH UNIT
Day : 7
RANBAXY RECEIVES TENTATIVE APPROVAL TO MANUFACTURE AND
MARKET ESOMEPRAZOLE MAGNESIUM DR CAPSULES IN USA
Day : 6
RANBAXY GAINS APPROVAL TO MANUFACTURE AND MARKET
CEFUROXIME AXETIL FOR ORAL SUSPENSION IN USA

January 2008
Day : 21
RANBAXY ANNOUNCES SETTLEMENT OF POSSIBLE IMITREX
LITIGATION WITH GLAXOSMITHKLINE
Day : 17
NET PROFIT FOR THE YEAR INCREASES 53% TO RS 7,901 MN
Day : 14
RANBAXY HONOURS INDIAN SCIENTISTS AND YOUNG SCIENCE
SCHOLARS
Day : 11
RANBAXY ENTERS THE CHYAWANPRASH MARKET
Check out the latest news and press releases capturing Ranbaxy's
accomplishments and happenings and events around the world.

November 2008
Day : 7
RANBAXY AND DAIICHI SANKYO SUCCESSFULLY COMPLETE
LANDMARK DEAL

October 2008
Day : 31
Q3 2008 GLOBAL SALES AT RS 18,884 MN (+ 14%); EMERGING
MARKETS DELIVER STRONG GROWTH OF 20%; DEVELOPED MARKETS
GROW BY 9%
Day : 20
RANBAXY AND DAIICHI SANKYO MOVE FORWARD TOWARD
Day : 16
RANBAXY ACHIEVES A SIGNIFICANT LANDMARK IN ANTI-MALARIAL
RESEARCH
Day : 13
RANBAXY ACHIEVES ANOTHER SIGNIFICANT MILESTONE IN GSK
RESEARCH COLLABORATION

September 2008
Day : 18
RANBAXY LABORATORIES LTD., RETAINS FORMER NEW YORK CITY
MAYOR RUDY GIULIANI TO LEAD TEAM IN RESOLUTION OF ISSUES
RAISED BY U. S. FOOD & DRUG ADMINISTRATION
Day : 17
RANBAXY STATEMENT ON FDA LETTERS

August 2008
Day : 1

RANBAXY 'S ARV DRUG, ABACAVIR 300MG TABLETS, INCLUDED IN

WHO'S PRE-QUALIFICATION LIST

July 2008
Day : 29
Q2 2008 GLOBAL SALES AT USD 440 MN (RS 18,296 MN), + 11%
Day : 28
RANBAXY LAUNCHES OMEPRAZOLE 40 MG CAPSULES
Day : 23
RANBAXY LAUNCHES GENERIC AMLODIPINE TABLETS ON DAY-1 IN
JAPAN
Day : 22
RANBAXY WINS UK SFO CASE
Day : 17
DAIICHI SANKYO AND RANBAXY CONFIRM DEAL IS BINDING AND
FINAL
Day : 14
PRESS STATEMENT

June 2008
Day : 25
RANBAXY GAINS TENTATIVE APPROVAL TO MANUFACTURE AND
MARKET VALGANCICLOVIR HYDROCHLORIDE TABLETS
Day : 18
RANBAXY AND PFIZER SETTLE LIPITOR LITIGATION WORLDWIDE
Day : 11
RANBAXY TO BRING IN DAIICHI SANKYO COMPANY LIMITED AS
MAJORITY PARTNER

May 2008
Day : 28
FULL FEDERAL COURT AFFIRMS THE AUSTRALIAN FEDERAL COURTS
DECISION IN FAVOR OF RANBAXY ON PFIZERS ATORVASTATIN
PATENT ON APPEAL
Day : 21
RANBAXY STRENGTHENS PRESENCE IN MIDDLE EAST REGION
Day : 12
RANBAXY & MERCK SIGN ANTI-INFECTIVE DRUG DISCOVERY AND
DEVELOPMENT AGREEMENT

April 2008
Day : 25
RANBAXY RECEIVES FINAL US FDA APPROVAL TO MANUFACTURE AND
MARKET CETIRIZINE HYDROCHLORIDE ORAL SOLUTION
Day : 22
RANBAXY AND ORCHID ANNOUNCE STRATEGIC BUSINESS ALLIANCE
Q1 2008 GLOBAL SALES AT USD 409 MN (RS 16,231 MN), + 15%
Day : 15
RANBAXY AND ASTRAZENECA REACH AGREEMENT IN ESOMEPRAZOLE
PATENT LITIGATION
Day : 9
RANBAXY AND DBT COLLABORATE IN THE AREA OF NDDR
Day : 8
RANBAXY BECOMES FIRST FOREIGN GENERIC COMPANY TO DEVELOP
A GENERIC PRODUCT INDEPENDENTLY OUTSIDE JAPAN AND RECEIVE
AUTHORISATION FROM MHLW - JAPAN
Day : 3
RANBAXY LAUNCHES WORLDS FIRST BIO-GENERIC RECOMBINANT
INJECTIBLE FOR THE TREATMENT OF OSTEOPOROSIS IN INDIA

March 2008
Day : 28
RANBAXY ANNUAL AUDITED RESULTS FOR YEAR 2007
Day : 18
RANBAXY TO INTRODUCE INERSAN BRAND IN INDIA AND NEPAL

February 2008
Day : 19
RANBAXY BOARD CLEARS SCHEME OF DE-MERGER OF NEW DRUG
DISCOVERY RESEARCH UNIT
Day : 7
RANBAXY RECEIVES TENTATIVE APPROVAL TO MANUFACTURE AND
MARKET ESOMEPRAZOLE MAGNESIUM DR CAPSULES IN USA
Day : 6
RANBAXY GAINS APPROVAL TO MANUFACTURE AND MARKET
CEFUROXIME AXETIL FOR ORAL SUSPENSION IN USA

January 2008
Day : 21
RANBAXY ANNOUNCES SETTLEMENT OF POSSIBLE IMITREX
LITIGATION WITH GLAXOSMITHKLINE
Day : 17
NET PROFIT FOR THE YEAR INCREASES 53% TO RS 7,901 MN
Day : 14
RANBAXY HONOURS INDIAN SCIENTISTS AND YOUNG SCIENCE
SCHOLARS
Day : 11
RANBAXY ENTERS THE CHYAWANPRASH MARKET

Corporate Logos

R&D Center

Overseas

Manufacturing
Facilities

Corporate Office
Corporate Office

Profile
Ranbaxy has a strong element of Corporate Social Responsibility
inscribed in its values and its concern for the society extends well
beyond
its
business
motives.
The company does not view success and achievements in terms of
commercial gains only but firmly believes that corporate social

responsibility is the key for providing a deep symbiotic relationship

that exists between the company and the environment it functions.
Over two decades ago, in 1979, in the wake of grim health scenario of
India, Ranbaxy realised the urgency to reach out to those who had
little or no access even to basic health care and instituted Ranbaxy
Rural
Development
Trust.
The main objective of the programme was to deliver primary health
care to the underserved and underprivileged section of the society to
achieve positive health for them and thus to contribute to the national
objective Health For All. As the scope of the programme and
companys commitment grew, in 1994, a professionally managed,
nonprofit, independent body Ranbaxy Community Health Care.

Mission & Values

Ranbaxy Science-Foundation
Ranbaxy Laboratories Limited incorporated Ranbaxy Research
Foundation in 1985 and was later reconstituted as a separate society
as Ranbaxy Science Foundation and registered under the Societies Act
in May 1994. with an implicit mission of giving impetus to research
activity and help in reviving Indias great scientific tradition. The
Foundation instituted Ranbaxy Research Awards to recognize original
outstanding contributions in the fields of Medical and Pharmaceutical
Sciences. Every year the Foundation invites nominations for 4 awards
3 Awards for Rs. 1,00,000/- each in the fields of Medical Sciences in

Basic. Applied and Clinical and 1 Awards of Rs. 1,00,000/- in the field
of Pharmaceutical Sciences. So far 104 scientists have been honoured
by
the
Foundation.
Ranbaxy Science foundation (RSF) is a non profit organization
dedicated to promote scientific endeavours in the country by
encouraging and rewarding and channeling national and international
knowledge and expertise on subjects connected with treatment of
diseases afflicting mankind. To achieve these objectives, the
Foundation conducts Round Table Conferences on topics concerning
public health and symposia on topics at the cutting edge of research in
medical sciences to explore the latest in the selected area of specialty
and its potential application for the benefit of mankind.
Being committed to recognising and furthering excellence, the
Foundation has also initiated Research Scholarship Awards for the
Young Scientists with an aim to stimulate their interest in research.
Late Prof. V. Ramalingaswami, was the founder Chairman of the
Foundation.
Dr. Nitya Anand a renowned pharmaceutical scientist is currently the
Chairman of the Ranbaxy Science Foundation.

Anti Malaria Project

Ranbaxy's Anti-Malaria collaborative research
program on Track
Ranbaxy has been working on the anti-malaria collaborative research
project since May 2003. Although antimalarial drugs have a large
market, it is a market with very limited resources. Together with the
challenges of drug resistance, poor health systems, lack of affordable,
safe and convenient treatment options, malaria treatment represents
one of the largest unmet medical needs.Ranbaxy collaborated with
Medicines for Malaria Venture to develop the synthetic peroxide
antimalarial drug in order to address this unmet need.
This novel antimalarial drug, RBx 11160 made headlines in Nature
magazine in August 2004, as a promising agent to treat uncomplicated
malaria. The production of RBx 11160 is not dependent on the
availability of agricultural resources (from which the current
Artemisinin drugs are derived), giving it a clear advantage in product

scale-up

and

cost.

Ranbaxy is committed to developing a drug that is not only safe and

effective, but also affordable to people in India, Africa and other
disease endemic countries. Arterolane, the potential antimalarial
candidate is currently undergoing Phase II b studies (dose range
finding studies) in Africa, Thailand and India.

Ranbaxy- meeting an unmet need in the neglected disease

segment
Ranbaxy Laboratories Limited, the largest pharmaceutical company in
India, and presently ranked among the top ten global generics
companies, is building its capacity as a research-based healthcare
company. Based in a malaria endemic country, Ranbaxy deeply
identifies with the continuing crisis that pandemics like malaria are
causing in developing countries. The Company has therefore
committed its expertise in R&D to work towards a breakthrough in the
treatment of this important disease.

Challenges in development of new treatment for malaria

Between 1975 and 1999, only four of the almost 1,400 new drugs
developed worldwide were antimalarial, and all were at least in part
the products of publicly funded research
Significant R & D effort and funding required to develop new
treatments
Returns on the R & D investment are lacking- as the purchasers of
the treatment are the poorest countries around the world. Low cost
is essential to ensure wide-spread up-take
Distribution of the treatment is difficult due to the remoteness of the
areas in which the disease is most prevalent and poor health
systems in malaria endemic countries
Background

Malaria is one of the most persistent and deadly diseases, claiming the
lives of more than one million people every year. The majority of its
victims are children under the age of five and pregnant women in
developing countries.
Malaria is a major public health problem in more than 90 countries
inhabited by more than 2.4 billion people 40% of the worlds
population. The disease is estimated to kill a child every 30 seconds
and to cause up to 600 million new infections worldwide annually.
Though the majority of the cases and approximately 90% of the
malaria deaths are found in sub-Saharan Africa, the disease is now
increasing in Asia and Latin America.
Concerns in the Existing Treatments for Malaria
There are more people dying of malaria today than 30 years ago. The
main cause of the resurgence is drug resistance.
Rising resistance to antimalarial drugs
Universal Chloroquine resistance to Plasmodium falciparum
Development of resistance not only compromises the efficacy of
existing antimalarial drugs but also threatens to pre-maturely
terminate the useful therapeutic life of new antimalarial drugs
Lack of effective, affordable and appropriate treatment options

Anti-HIV/AIDS
Ranbaxy comprehensive anti-HIV portfolio comprises BioEquivalent Anti-Retrovirals (ARVs) and Anti-Infectives for
Opportunistic
infections
Ranbaxy, in its endeavor to make ARVs accessible to patients around
the world, is leveraging its global network of offices, affiliates, joint
ventures and alliances. With Ranbaxy products being marketed in over
125 countries and ground operations in 49 countries, Ranbaxy
provides pre & post sales support to institutions, NGOs, and Ministries
of Health, making Ranbaxy ARVs available in their respective
treatment
programs
Several
humanitarian
and
government
programmes have sourced ARVs from Ranbaxy. Some of them being

MoH-Nigeria, MSF in various countries, MDM-Cambodia, MEDS in

Kenya, etc. In Zambia, the Ministry of Health has lauded Ranbaxy's
initiative in making available quality ARVs at reasonable prices in that
country. In Latin America, Ranbaxy's ARVs have been registered in
Brazil, Peru, Venezuela and Guatemala among other countries. In
South East Asia, ARVs are being marketed in Vietnam, Cambodia and
Myanmar already. Besides, regulatory filings are on in several
countries in these regions.
Encouraged by the positive response to its efforts to make quality antiHIV generics, Ranbaxy is committed to working on all possible fronts
and seeking partnerships to improve access to these medicines.

Ranbaxy offers a complete basket of pharmaceuticals for several first

line HAART regimens. The current portfolio is the largest range of bioequivalent generic ARVs available from a single company. These
products are manufactured at Ranbaxy's WHO prequalified and USFDA
approved facilities.

Several Ranbaxy ARVs approved by USFDA and WHO

First Asian pharmaceutical company to get approval for a generic
ARV from USFDA
Over 250 approvals of ARVs across 40 countries, with 130 more
in pipeline
Only company using both WHO & USFDA approved API supplier
Bioequivalence studies conducted at leading CROs in North
America
All ARVs comply with Zone IV and Zone II stability requirements
Leading supplier of ARVs to global NGOs, Institutions &
Government programs
Ranbaxy's ARVs have catered to treatment programs in over 50
countries globally
Ranbaxy's quality FDCs reduce pill burden and improve patient
compliance

Ranbaxy Laboratories
Ranbaxy Laboratories Limited

Type

Public

Founded

1961

Headquarters
Employees
Website

Gurgaon, Haryana, India

1100 in R&D
www.ranbaxy.com

Ranbaxy Laboratories Limited is India's largest

pharmaceutical company. Incorporated in 1961,
Ranbaxy exports its products to 125 countries with
ground operations in 46 and manufacturing facilities
in seven countries. It is ranked among the top 10
generic companies worldwide. The CEO of the
company is Malvinder Mohan Singh.

History
Ranbaxy was started by Ranjit Singh and Gurbax Singh in 1937 as a
distributor for a Japanese company Shionogi. Interestingly the name
Ranbaxy is a portmanteau word from the names of its first owners
Ranjit and Gurbax. Bhai Mohan Singh bought the company in 1952
from his cousins Ranjit Singh and Gurbax Singh. After Bhai Mohan
Singh's son Parvinder Singh joined the company in 1967, the company
saw a significant transformation in its business and scale. His sons
Malvinder Mohan Singh and Shivinder Mohan Singh sold the company
to the Japanese company Daichi in June 2008.
==M98, Ranbaxy entered the United States of America, the world's
largest pharmaceuticals market and now the biggest market for
Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.
For the twelve months ending on December 31, 2005, the company's
global sales were at US $1,178 million with overseas markets
accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil,
Russia, and China: 29%). For the twelve months ending on December
31, 2006, the company's global sales were at US $1,300 million.
Most of Ranbaxy's products are manufactured by license from foreign
pharmaceutical developers, though a significant percentage of their
products are off-patent drugs that are manufactured and distributed
without licensing from the original manufacturer because the patents
on such drugs have expired.
In December 2005, Ranbaxy's shares were hit hard by a patent ruling
disallowing production of its own version of Pfizer's cholesterol-cutting
drug Lipitor, which has annual sales of more than $10 billion. [1] In June
2008, Ranbaxy settled the patent dispute with Pfizer allowing them to
sell Atorvastatin Calcium, the generic version of Lipitor (R)and
Atorvastatin Calcium-Amylodipine Besylate, the generic version of
Pfizer's Caduet(R) in the US starting November 30, 2011. The settlement
also resolved several other disputes in other countries. [2]

On June 23, 2006, Ranbaxy received from the U.S. Food & Drug
Administration a 180-day exclusivity period to sell simvastatin (Zocor)
in the U.S. as a generic drug at 80 mg strength. Ranbaxy presently
competes with the maker of brand-name Zocor, Merck & Co.; IVAX
Corporation (which was acquired by and merged into Teva
Pharmaceutical Industries Ltd.), which has 180-day exclusivity at
strengths other than 80 mg; and Dr. Reddy's Laboratories, also from
India, whose authorized generic version (licensed by Merck) is exempt
from exclusivity.
On September 16, 2008, The Food and Drug Administration issued two
Warning Letters to Ranbaxy Laboratories Ltd. and an Import Alert for
generic drugs produced by two manufacturing plants in India. [3]
On June 10, 2008, Japan's Daiichi Sankyo Co., agreed to take a majority
(50.1%) stake in Ranbaxy, with a deal valued at about $4.6 billion.
Ranbaxy's Malvinder Singh will remain CEO after the transaction.
Malvinder Singh also said that this was a strategical deal and not a sell
out. [4]

Daiichi-Sankyo's Acquisition of Ranbaxy

Introduction
Pharmaceutical industry is one of the most Knowledge Driven
industry, and is continually in a state of dynamic transition. Diversities
in lifestyles and diseases offer stiff challenges to the design of specific
and targeted solutions.
In this scenario we have looked at one of the watershed M&A deal in
the Pharmaceutical industry that will alter the face of the global
industry ,especially that of India. The union of Japans Daiichi-Sankyo
and Indias Ranbaxy is the biggest acquisition of a listed Indian entity
till date. In a coup of sorts, Daiichi-Sankyo acquired 34.8% stake in
[[Ranbaxy on 11th June 2008 for a value $2.4 billion.

Rationale for the merger

It helps Daiichi-Sankyo and Ranbaxy to develop a mutually
complementary hybrid business model that dramatically enhances
their ability to pursue business development in emerging economies,

and extends reach to include both proprietary drugs and

nonproprietary drugs. This hybrid model not only disperses risk, it also
sets Daiichi firmly on the path toward sustainable growth by securing
new growth opportunities.
Daiichi-Sankyo already has business operations in 21 countries. The
addition of Ranbaxy Laboratories will dramatically extend its global
reach. With operations in 56 countries, including many where DaiichiSankyo has so far not operated, such as Mexico, Russia and East
European countries, Ranbaxy will them build a stronger presence in
emerging markets. In India they will be one of the biggest
pharmaceutical companies in terms of sales. They will also extend the
marketing network into East Europe and Asia, while on the African
continent.
The main benefit for Daiichi-Sankyo from the merger is Ranbaxys lowcost manufacturing infrastructure and supply chain strengths. Ranbaxy
gains access to Daiichi-Sankyos research and development expertise
to advance its branded drugs business. Daiichi-Sankyos strength in
proprietary medicine complements Ranbaxys leadership in the
generics segment and both companies acquire a broader product base,
therapeutic focus areas and well distributed risks. Ranbaxy can also
function as a low-cost manufacturing base for Daiichi-Sankyo. Ranbaxy,
for itself, gains smoother access to and a strong foothold in the
Japanese drug market. The immediate benefit for Ranbaxy is that the
deal frees up its debt and imparts more flexibility into its growth plans.

The Deal
The combined company will be worth about $30 billion. The acquisition
will help Daiichi-Sankyo to jump from number 22 in the global
pharmaceutical sector to number 15.
The combination has other benefits for the Japanese company. It gets a
stake in a major player in generics, an area that is becoming
increasingly important in Japan. According to the 2008 Japanese
Pharmaceuticals & Healthcare Report (2nd quarter), the country's
pharmaceutical market is currently valued at $74.4 billion and is the
most mature in the Asia-Pacific region. By 2012, the market will grow
to $82 billion. The country's generics sector is one of the most
promising.

Daiichi-Sankyo Co. Ltd. signed an agreement to acquire 34.8% of

Ranbaxy Laboratories Ltd. from its promoters. Daiichi-Sankyo expects
to increase its stake in Ranbaxy through various means such as
preferential allotment, public offer and preferential issue of warrants to
acquire a majority in Ranbaxy, i.e. at least 50.1%. After the acquisition,
Ranbaxy will operate as Daiichi-Sankyos subsidiary but will be
managed independently under the leadership of its current CEO &
Managing Director Malvinder Singh.

Synergies
Generic drug markets can allow Daiichi-Sankyo to tap the potential of
the generics business, Ranbaxys branded drug development initiatives
for the developed markets will be significantly boosted through the
relationship. To a large extent, Daiichi-Sankyo will be able to reduce its
reliance on only branded drugs and margin risks in mature markets
and benefit from Ranbaxys strengths in generics to introduce generic
versions of patent expired drugs, particularly in the Japanese market.
Both Daiichi-Sankyo and Ranbaxy possess significant competitive
advantages, and have profound strength in striking lucrative alliances
with other pharmaceutical companies. Despite these strengths, the
companies have a set of pain points that can pose a hindrance to the
merger being successful or the desired synergies being realized.

Post-acquisition Objectives
In light of the above analyses, Daiichi-Sankyos focus is to develop new
drugs to fill the gaps and take advantage of Ranbaxys strong areas. To
overcome its current challenges in cost structure and supply chain,
Daiichi-Sankyos primary aim is to establish a management framework
that will expedite synergies. Having done that, the company seeks to
reduce its exposure to branded drugs in a way that it can cover the
impact of margin pressures on the business, especially in Japan]]. In a
global pharmaceutical industry making a shift towards generics and
emerging market opportunities, Daiichi-Sankyos acquisition of
Ranbaxy signals a move on the lines of its global counterparts Novartis
and local competitors Astellas Pharma, Eesei and Takeda
Pharmaceutical. Post acquisition challenges include managing the
different working and business cultures of the two organizations,
undertaking minimal and essential integration and retaining the
management independence of Ranbaxy without hampering synergies.
Ranbaxy and Daiichi-Sankyo will also need to consolidate their
intellectual capital and acquire an edge over their foreign counterparts.

Conclusion
In summary, Daiichi-Sankyos move to acquire Ranbaxy will enable the
company to gain the best of both worlds without investing heavily into
the generic business. Through the deal, Ranbaxy has become part of a
Japanese corporate framework, which is extremely reputed in the
corporate world. As a generics player, Ranbaxy is very well placed in
both India and abroad although its share performance belies its true
potential. Given Ranbaxys intention to become the largest generics
company in Japan]], the acquisition provides the company with a
strong platform to consolidate its Japanese generics business
Report card
PE ratio
EPS (Rs)
Sales (Rs crore)
Face Value (Rs)
Net profit margin (%)
Last bonus
Last dividend (%)
Return on average equity

13.27
16.56
1,132.82
5
11.86
3:5
120
13.98

21/11/08
Dec, 07
Sep, 08
Dec, 99
18/07/02
28/03/08
Dec, 99

Research centre
Results
Statement
More

Quarterly - Half yearly - Annual

Balance sheet - P&L - Cash flow
Dividend - Bonus - Share holding
Capital structures - Ratio

MFs invested in this company

Add to Portfolio | Watch List
Quantity
Cost/Unit
Date

Goes above Rs
Goes below Rs

Scheme
+
UTI Spread Fund - Growth

% of scheme asset size

29.01

+
29.01
UTI Spread Fund - Dividend
+
HDFC FMP 181D December 2007 - Institutional 18.86
Plan - Growth
+
18.57
HDFC FMP 181D December 2007 - Growth
+
18.57
HDFC FMP 181D December 2007 - Dividend

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 Natural history of anemia in type 2 diabetes defined

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Analgesics
Cardiovasculars
CNS
Cough Preparations & Anti-Histamines
Diagnostic Instruments
Oral Anti-Diabetics
Other Anti-Infectives
Quinolones
Reagents-Cardiac Markers
Reagents-Serology

Anti-Peptic Ulcerants
Cephalosporins
Combination Therapy
Dermatologicals
Nutritionals
Orthopaedic Segment
Others
Reagents-Biochemistry
Reagents-HIV/Hepatitis
Reagents-Torch Range

 Semi-Synthetic Penicillins

Business
Daiichi to take control of Ranbaxy

Sandeep Joshi
Deal size valued at $4.6 billion; to acquire promoters stake of 34.82 %
Malvinder Singh
will continue to
lead the company
Post-acquisition
RBL will become
a debt-free firm

 PHOTO: AFP

ECONOMIES OF SCALE:

Researchers conduct
tests at the Ranbaxy Laboratories in Mumbai.

NEW DELHI: Japanese drug major Daiichi Sankyo Company will

acquire majority stake in Ranbaxy Laboratories Ltd. (RBL). Under the
deal valued for up to $4.6 billion, Daiichi Sankyo would purchase the
entire 34.82 per cent stake from its promoters (Malvinder Singh and
family), and later give an open offer to the public shareholders for 20
per cent of Ranbaxys shares.
Daiichi Sankyo is expected to acquire the majority equity stake in
Ranbaxy by a combination of purchase of shares held by the sellers;
preferential allotment of equity shares; an open offer to the public
shareholders for 20 per cent of Ranbaxys shares, as per Indian
regulations; and Daiichi Sankyos exercise of a portion or all of the
share warrants to be issued on a preferential basis. All the
shares/warrants will be acquired/issued at a price of Rs. 737 per
share, said a company statement here.
Malvinder Singh will, however, continue to lead the company as its
CEO and Managing Director, also hold the position of Chairman of the
board upon closure of the deal, which is expected by March 2009.
Post-deal, the combined market capitalisation of both companies would
be around $30 billion, making it the worlds 15th largest
pharmaceutical company.
Commenting on the deal, Mr. Singh said: Together with our pool of
scientific, technical and managerial resources and talent, we would
enter a new orbit to chart a higher trajectory of sustainable growth in
the medium and long term in the developed and emerging markets
organically and inorganically. This is a significant milestone in our
mission of becoming a research-based international pharmaceutical
company. As the company moves into a next level of growth it would
benefit the organisation, its shareholders and the employees.
According to Daiichi Sankyo President and CEO Takashi Shoda, The
proposed transaction is in line with our goal to be a global pharma
innovator and provides the opportunity to complement our strong
presence in innovation with a new, strong presence in the fast growing
business of non-proprietary pharmaceuticals. Daiichi Sankyo has
operations in 21 countries, and by entering into agreement with
Ranbaxy, their presence would increase to 60 countries, he added.

Ranbaxy said the proposed open offer price of Rs.737 represents a

premium of 53.5 per cent to Ranbaxys average daily closing price on
the National Stock Exchange for the three months ending June 10.
Besides, the offer price is 31.4 per cent higher than Tuesdays closing
price.
Post acquisition, Ranbaxy Laboratories would become a debt-free firm
with a cash surplus of around Rs. 2,800 crore.
PTI reports:
Earlier deals to stay
The Japanese firm said there would be ten members in the board and
Ranbaxy would appoint four members, Mr. Singh, while the rest of the
members would be from Daiichi Sankyo.
Explaining the deal Mr. Singh said, post-closing Ranbaxy would
continued to remain an independent identity and all the strategic tieups of the company, including the deals with Zenotech, Orchid and
Merck would remain unaffected.
The hived-off research and developed division of the firm would remain
with the company.

CONCLUSION

As Per the above observations and analysis it seems that most of the medicine of
Ranbaxy is the world biggest pharma company in the world and the medicine of the
company is very important in the resent scenario.
Finally we analysis that company performance is much better after
acquizations.

BIBLIOGRAPHY
WEBSITE
WWW.RANBAXY.COM
WWW.GOOGLE.COM
WWW.PHARMAINDIA.COM

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