NEW DELHI: Ranbaxy Laboratories may hand over its Latin American marketing operations to parent Daiichi Sankyo, a move analysts said could be a precursor to the Indian drugmaker's exit from some countries in the region.
"Daiichi may be better placed to lead the business from the front for both the companies (in these countries)," Ranbaxy chief executive officer Arun Sawhney told analysts in a conference call on Friday.
"The evaluation of the plan is under way." Ranbaxy has operations in 11 countries in the region, including Brazil and Mexico.
A person familiar with the company's operations told ET that the Gurgaon-based company has been looking to exit Brazil, its largest market in Latin America, adding that Daiichi Sankyo could also buy out Ranbaxy's operations in that country.
A Ranbaxy spokesman did not respond to ET's queries.
Brokerage firm CLSA analyst Hemant Bakhru said Ranbaxy may close it marketing operations in those countries to reduce costs.
Ranbaxy's share price closed at 428.45, down 2.61% on Bombay Stock Exchange on Friday.
After acquiring Ranbaxy Laboratories in 2008, Daiichi Sankyo has been restructuring its global operations to cross-leverage strengths with the Indian company.
While Daiichi makes original patented drugs, Ranbaxy specialises in low-cost versions of off-patent drugs.
In Japan and Mexico, Daiichi Sankyo has started marketing Ranbaxy medicines while the Indian firm is selling Daiichi Sankyo's drugs in few countries, including India, Malaysia and Singapore.
Ranbaxy's sales from the Latin American fell by a third to $13 million in the quarter ended December 2011 from a year ago. Annual sales also fell 26% to $61 million.
In the last two years, Ranbaxy has exited from China, Vietnam and Japan by selling its stake and its products are retailed through marketing alliances with other partners or Daiichi Sankyo.
Sawhney said the company is planning to set up a manufacturing facility in Malaysia and invest more in Nigeria.
While Ranbaxy's European sales have been flat, they have declined in Asia Pacific and the Confederation of Independent States.
indiatimes.com
"Daiichi may be better placed to lead the business from the front for both the companies (in these countries)," Ranbaxy chief executive officer Arun Sawhney told analysts in a conference call on Friday.
"The evaluation of the plan is under way." Ranbaxy has operations in 11 countries in the region, including Brazil and Mexico.
A person familiar with the company's operations told ET that the Gurgaon-based company has been looking to exit Brazil, its largest market in Latin America, adding that Daiichi Sankyo could also buy out Ranbaxy's operations in that country.
A Ranbaxy spokesman did not respond to ET's queries.
Brokerage firm CLSA analyst Hemant Bakhru said Ranbaxy may close it marketing operations in those countries to reduce costs.
Ranbaxy's share price closed at 428.45, down 2.61% on Bombay Stock Exchange on Friday.
After acquiring Ranbaxy Laboratories in 2008, Daiichi Sankyo has been restructuring its global operations to cross-leverage strengths with the Indian company.
While Daiichi makes original patented drugs, Ranbaxy specialises in low-cost versions of off-patent drugs.
In Japan and Mexico, Daiichi Sankyo has started marketing Ranbaxy medicines while the Indian firm is selling Daiichi Sankyo's drugs in few countries, including India, Malaysia and Singapore.
Ranbaxy's sales from the Latin American fell by a third to $13 million in the quarter ended December 2011 from a year ago. Annual sales also fell 26% to $61 million.
In the last two years, Ranbaxy has exited from China, Vietnam and Japan by selling its stake and its products are retailed through marketing alliances with other partners or Daiichi Sankyo.
Sawhney said the company is planning to set up a manufacturing facility in Malaysia and invest more in Nigeria.
While Ranbaxy's European sales have been flat, they have declined in Asia Pacific and the Confederation of Independent States.
indiatimes.com
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