Ranbaxy Laboratories rose 1.81% to Rs 571.45 at 11:22 IST on BSE after the company said it entered into a licencing agreement with Canada's Cipher Pharmaceuticals Inc to exclusively market the latter's isotretinoin capsules in Brazil.
The company made the announcement after market hours on Thursday, 24 July 2014.
Meanwhile, the BSE Sensex was down 113.88 points, or 0.43%, to 26,157.97.
On BSE, so far 73,000 shares were traded in the counter, compared with an average volume of 1.54 lakh shares in the past one quarter.
The stock hit a high of Rs 573.90 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 564 so far during the day. The stock hit a 52-week low of Rs 253.95 on 2 August 2013.
The stock had outperformed the market over the past one month till 24 July 2014, rising 20.93% compared with 3.56% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.17% as against Sensex's 14.84% rise.
The large-cap company has an equity capital of Rs 212.01 crore. Face value per share is Rs 5.
Ranbaxy Laboratories announced that it has signed a licensing agreement with Cipher Pharmaceuticals Inc. to exclusively market, sell and distribute Cipher's isotretinoin capsules in Brazil. The agreement extends the current relationship with Cipher, under which Ranbaxy is marketing and distributing Cipher's isotretinoin product in the United States under the brand Absorica.
Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional pre-commercial milestone payments. Cipher will be supplying the product and Ranbaxy will be responsible for gaining regulatory approval of the product in Brazil, Ranbaxy said in a statement.
Commenting on the partnership, Sanjeev I Dani, Executive Vice President & Head, Global Strategy, Ranbaxy said, "We are pleased to take this novel formulation of isotretinoin to the additional large market of Brazil. I am sure it would prove to be a valuable option for dermatologists and patients who suffer from severe recalcitrant nodular acne. We will utilise our strong front-end capabilities in making this product available in Brazil."
Ranbaxy said it plans to promote the product through a brand dermatology division in Brazil. The isotretinoin formulation is expected to be a flagship product in Ranbaxy's dermatology franchise in Brazil, once it achieves regulatory approval.
Cipher's isotretinoin product is a novel formulation of isotretinoin, which is used in the treatment of severe recalcitrant nodular acne. Isotretinoin is the most effective severe acne therapy available to teenagers who suffer from acne. The product is marketed in the United States by Ranbaxy as Absorica, the company said.
Cipher Pharmaceuticals is a specialty pharmaceutical company with three commercial products and a fourth in development. Its product candidates are typically improved formulations of successful, currently marketed drugs. It in-licenses a product, manages the required clinical development and regulatory approval process, and either out-licenses it to a marketing partner, or, in Canada, it may market the product itself. Its core capabilities are in clinical and regulatory affairs, product licensing, supply chain management, and marketing and sales. The company has achieved final regulatory approval in the US and Canada for all three of our original products and completed eight marketing partnerships, generating growing licensing revenue.
Ranbaxy Laboratories reported a consolidated net loss of Rs 73.65 crore in the quarter ended March 2014, compared with net profit of Rs 125.75 crore in the quarter ended March 2013. Total income fell 1.73% to Rs 2490.51 in the quarter ended March 2014 over the quarter ended March 2013.
Ranbaxy Laboratories 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.
On 7 April 2014, Sun Pharmaceuticals Industries and Ranbaxy announced entering into definitive agreements pursuant to which Sun Pharma will acquire 100% of Ranbaxy in an all-stock transaction. Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.
The combination of Sun Pharma and Ranbaxy creates the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The combined entity will have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of specialty and generic products marketed globally, including 629 ANDAs. On a pro forma basis, the combined entity's revenues are estimated at $4.2 billion with EBITDA of $1.2 billion for the twelve month period ended 31 December 2013. The transaction value implies a revenue multiple of 2.2 based on 12 months ended 31 December 2013.
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