Ranbaxy sets up 100% arm in Italy

Ranbaxy Laboratories has launched its operations in Italy, one of the top five pharmaceutical markets in Europe, by floating a wholly owned subsidiary, Ranbaxy Italia SPA, in Milan.

By entering Italy, the company is charting an organic growth route for itself and will be introducing high quality generic medicines from its extensive international product portfolio by early 2006.

Commenting on the launch of its Italian operations, Malvinder Mohan Singh, executive director and president - pharmaceuticals, Ranbaxy, said generic medicines have an important role to play in serving the priorities of the Italian government to make healthcare more affordable and accessible to all. "We are committed to this task and will soon be introducing a number of products in the country," he added.

The Indian multinational's move helps it consolidate its presence in the top 5 European pharmaceutical markets while recording its presence in 21 of the 25 EU countries.

Italy is ranked as the fourth largest pharmaceuticals market in Europe after Germany, the UK and France. The total size of the drug market in Italy was pegged at $16.5 billion.

With the government encouraging generics to reduce the cost of healthcare, this segment is expected to grow rapidly in the coming years.

Additional impetus will come from the expiry of some block-buster drug patents, expected by 2008-2009. Ranbaxy is currently present in over 100 countries and has an expanding international portfolio of affiliates, joint ventures and alliances. The company has own field operations in 44 countries and manufacturing operations in 7 countries.

Ranbaxy is also looking at acquiring facilities and businesses in Europe and the US to to expand its global operations.