A project report on financial analysis of novartis india (1)
Company profile of ranbaxy
1. Company Profile
Ranbaxy Laboratories Limited (Ranbaxy), 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. Ranbaxy today
has a presence in 23 of the top 25 pharmaceutical markets of the world. The company has a global
footprint in 43 countries, world-class manufacturing facilities in 8 countries and serves customers in over
125 countries.
In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies,
Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical powerhouse. The
combined entity now ranks among the top 20 pharmaceutical companies, globally. The transformational
deal will place Ranbaxy in a higher growth trajectory and it will emerge stronger in terms of its global
reach and in its capabilities in drug development and manufacturing.
Ranbaxy was incorporated in 1961 and went public in 1973.
Mission
Ranbaxy's mission is 'Enriching lives globally, with quality and affordable pharmaceuticals'.
Financials
For the year 2011, the company recorded Global Sales of US $ 2.1 Bn. The company has a balanced mix
of revenues from emerging and developed markets that contribute 47% and 46% respectively. In 2011,
North America, the company's largest market contributed sales of US $ 791 Mn, Europe contributing US
$ 297 Mn and Asia clocking sales of US $ 503 Mn.
2. Strategy
Ranbaxy is focused on increasing the momentum in the generics business in its key markets through
organic and inorganic growth routes. Growth is well spread across geographies with focus on developed
and emerging markets. It is the company's constant endeavour to provide a wide basket of generic and
innovator products, leveraging the unique Hybrid Business Model with Daiichi Sankyo. In Japan, Daiichi
Sankyo Espha Co., Ltd. (DS Espha) will market generic drugs. As part of the Hybrid Business Model,
Daiichi Sankyo will utilize Ranbaxy's strong manufacturing capabilities and expertise in developing
generic medicines for the Japan and market them through DS Espha.
The company will also increasingly focus in high growth potential segments like Vaccines and
Biosimilars. These new areas will add significant depth to the existing product pipeline.
R&D
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 1000 R&D scientists
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.
Ranbaxy has developed and launched India's first new drug, Synriam™, for the treatment of
uncomplicated Plasmodium falciparum malaria, in adults. The anti-malarial new drug, arterolane
maleate + piperaquine phosphate was approved by the Indian Drug Regulator, Drug Controller General
of India (DCGI) for manufacturing and marketing in India, earlier this year.
3. Within Ranbaxy, there is a sharper focus on R&D of Generics, as the company is increasingly working on
more complex and specialist areas.
People
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 over
14,000 strong multicultural work force comprising of more than 50 nationalities, Ranbaxy continues to
aggressively pursue its mission of 'Enriching lives globally, with quality and affordable pharmaceuticals'.
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.
Ranbaxy's global footprint extends to 43 countries embracing different locales and cultures to form a
family of 50 nationalities with an intellectual pool of some of the best minds in the world.
An introduction to Ranbaxy in India
Ranbaxy is one of the leading pharmaceutical Companies in India commanding a market share of
around 5%. The Company has clocked sales of USD 293 Mn in 2009 in India. Growing ahead of the
market, the Company has enhanced its competitive position in the domestic market through its
focused approach. The Company‟s 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.
Ranbaxy is a strong player in the Novel Drug Delivery System (NDDS) segment. Its product portfolio
spans across Acute & Chronic Business covering Anti-infectives, Nutritionals, Gastro-intestinals, Pain
Management (Acute) Cardiovasculars, Dermatologicals, Central Nervous Systems (Chronic) segments.
Company‟s India operations are a dominant force in a number of participating therapeutic segments,
for example Anti-infectives, Statins, Dermatology and Pain Management. A publicly listed company,
Ranbaxy India is also a member of IPA (Indian Pharmaceutical Alliance) & OPPI (Organization of
4. Pharmaceutical Producers of India).
Our Key Strengths
• Company growing faster than the market.
• One of the largest distribution networks that comprises 2500+ skilled field force. Dedicated task
forces for specialised & chronic therapies
• A strong player in the NDDS segment. Key brands include Cifran OD (Ciprofloxacin), Zanocin
OD (Ofloxacin) & Sporidex AF (Cephalexin)
• Strong brand building capabilities, reflected in the fact that around 20 brands feature in the
“Top-300 brands of the Industry” list. Leading 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 India‟s 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 Medico-marketing 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, CME‟s) are conducted and about 20 Clinical Papers
published annually
• With a futuristic approach, the India operations attempt to capitalize on the fast- emerging, high-
growth segments with innovative products and services:
o 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 in-
licensed or taken on Co-promotion from Sanofi Pastuer.
o 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
o 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
world’s first novel product, Osovair (Formoterol + Ciclesonide) inhalation capsules has been
introduced in the Indian market.
o 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.
o A slew of products have been launched in the Dermatology segment: Suncross (Sunscreen lotion),
Sotret (Isotretnoin), Eflora (Eflornithine)
Manufacturing Facilities
An organisations' capabilities and intent are strongly reflected in the product it manufactures. In other
words, the manufacturing competencies and facilities echo truly, the R&D extent and the ability to
implement it for the best of the market it targets.
RANBAXY® possesses the manufacturing strengths that have established it as a producer of world-class
generics, branded generics and a major supplier of its range of Active Pharmaceutical Ingredients for
pharmaceutical products of companies worldwide.
5. Ranbaxy has world-class manufacturing facilities in 8 countries namely Ireland, India, Malaysia,
Morocco, Nigeria, Romania, South Africa, and USA. Its overseas facilities are designed to cater to the
requirements of the local regulatory bodies of that country while the Indian facilities meet the requirements
of all International Regulatory Agencies. Some of the agencies such as MCA-UK, MCC-South Africa,
FDA-USA and TGA-Australia, have audited Ranbaxy‟s manufacturing facilities for the compliance with
international Good Manufacturing Practices and have registered its products for safety, quality and
efficacy.
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,
6. Nutritionals and Urology segments, clearly indicates that the Company has strengthened its presence in
the fast-growing chronic and lifestyle disease segments.
Top 10 Molecules (2010)
• Valacyclovir
• Simvastatin
• Donepezil
• Atorvastatin & Combinations
• Co-amoxyclav & Combinations
• Ciprofloxacin & Combinations
• Ketorolac Tromethamine
• Imipenem+Cilastatin
• Ginseng+Vitamins
• Loratadine & Combinations
LIFE AT RANBAXY
Human Resource
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.
7. 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 around 14000 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
8. 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
The Management Trainee Programme
In order to bring consistent growth, sustainability and novelty to our business operations we at Ranbaxy
follow a special “Management Trainee Programme”.
This programme aims at developing and nurturing young talents identified from premier Management
Institutes of the country and trains them to excel in their respective area of specialization through on-job-
trainings. Both behavioral and Functional trainings are imparted to them. They are put into diverse fields of
businesses and challenging assignments which enables them to be fully prepared to tackle any business
challenges of tomorrow thereby moulding them to be our future leaders. Care has also been taken to
provide them with ample opportunities for their personal and professional development.
Management Trainees are provided with live projects which expose them to the various facets of business
realities. They are not only under rotation in different fields of activities during their tenure but also work in
Cross Functional Teams exposing them to deal with inter-related, complex and critical activities of
business. Specific project assignments are also given under supervision and guidance of senior
management members and periodic progress is monitored. They are also given inter-location trainings to
get them familiarized with in-depth understanding of the functions at various stages of the business
activity.
Throughout the process, hand-holding and guidance of Global OD Function ensures all management Trainees
make most out of their unique learning experience. After successful completion, a special evaluation
committee constituted conducts merit driven evaluation of their results and performance under different
projects. Based on their overall performance of the entire training period, they are regularized as Managers
and accommodated into various departments of the organization. This unfolds the second phase of their
journey of learning and achievements.
Research & Development
9. 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.
The NDDS research at Ranbaxy focuses on maximizing the overall
therapeutic and commercial value of commonly prescribed
pharmaceutical formulations by enhancing their performance and
reducing their adverse event profile. Such innovation also helps to
improve the overall patient convenience and compliance
The company's NDDS focus is mainly on the development of New
Drug Applications (NDA) / Abbreviated New Drug Applications
(ANDAs) of oral controlled- release products for the regulated markets. The Company's first significant
international success using the NDDS technology platform came in September 1999, when Ranbaxy licensed
its once-a-day Ciprofloxacin formulation on a worldwide basis to a multinational Company.
Ranbaxy's in-house NDDS programs are primarily focused on the oral segment. Inhalation (patented
devices) and trans-dermal (patented adhesive polymers) programs are also being pursued through
collaborations.
In the oral NDDS space, Ranbaxy has already developed four platform technologies namely Gastro
Retentive, Modified Matrix, Multiparticulate and AeroGel. Several products leveraging these technologies
have been successfully developed.
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 has become an integral part of Daiichi Sankyo Life Science
Research Center in India, based in Gurgaon, Ranbaxy continued to independently develop the anti-malarial
new drug, Arterolanemaleate + Piperaquine phosphate. In 2011, Ranbaxy received permission from the
Indian Drug Regulator, Drug Controller General of India (DCGI), to manufacture and market this drug in
India. The company has now launched India‟s first new drug, SynriamTM, for the treatment of uncomplicated
Plasmodium falciparum malaria, in adults.
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.
Business Development & Partnerships
Our Vision for Success
By continuing to invest in our research and development, we strive to discover and develop Value Added
Products and quality generics that address unmet medical needs, improve patient compliance and make
products more affordable to patients. Our Global Business Development and Licensing team‟s mission is to
support Ranbaxy‟s growth aspirations by partnering on late stage or marketed, high potential products that
complement our in-house portfolio (therapeutically, and by stage of development).
10. Proven Track Record
Ranbaxy has a strong history of successful collaborations. Through the years, our entrepreneurial spirit has
evolved to include licensing in/out, collaborations and M&A. We have a full range of both global and local
integrated organizational and commercial capabilities combined with a track record of successful product
launches – and the financial strength to ensure appropriate investment in the products. What makes us a
successful partner? Our strong relationships with leading pharmaceutical firms, which stem from:
Dedicated Global Business development and licensing teams and a focused in-organic strategy
Large global reach with ground operations in 43 countries across emerging & developed markets
Proven success in driving market share and volume
Dedicated post alliance management team
Our Future Interests
To fulfill our mission of contributing to enriching lives globally, with quality & affordable pharmaceuticals, we
continue to seek partners that match our values, work ethics and commitment to patients. Our focus areas
for collaboration are:
Cardiovascular
Metabolic Disorders
Oncology
Dermatology
Late-stage NME‟s (Phase III onwards / Already Marketed) and Early stage Super Generic products
requiring strong commercial execution in above therapy area‟s for Emerging Markets and in Dermatology for
our USA market
Biosimilars
Platform Technologies
Partner with Ranbaxy
Please contact us to start a conversation about how we can work together to improve patient lives through
the development of high-quality & affordable pharmaceutical products.
While our Global Business Development Team in based in our HQ at Gurgaon, Haryana, India we have
Business Development colleagues located globally, in Emerging Markets across India ( Mumbai), Africa
(Johannesburg), CIS (Moscow), and in Developed Markets in US (Princeton, New Jersey) Europe (London,
UK) and in several other markets.