Ranbaxy Laboratories gains on restructuring plan

Ranbaxy Laboratories gains on restructuring plan

Ranbaxy Laboratories gained 1.73% to Rs 377.10 at 11:33 IST on BSE, after the company said its board would meet on 19 February 2008 to consider spinning off its new drug discovery research unit into a separate company.

The company made this announcement after market hours on Wednesday, 13 February 2008.

Meanwhile, BSE Sensex was up 600.04 points or 3.54% to 17,549.18, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy.

On BSE, 60,083 shares were traded in the counter. The scrip had an average daily volume of 2.91 lakh shares in the past one quarter.

The stock hit a high of Rs 383 and a low of Rs 373.05 so far during the day. The stock had a 52-week high of Rs 490 on 21 November 2007 and a 52-week low of Rs 299.90 on 22 January 2008.

The mid-cap scrip had outperformed the market over the past one month till 13 February 2008, declining 4.92% compared to the Sensex’s decline of 16.31%. It had also outperformed the market in the past one quarter, declining 12.50% compared to Sensex’s decline of 14.33%.

The company’s current equity is Rs 186.58 crore. Face value per share is Rs 5.

The current price of Rs 377.10 discounts its Q4 December 2007 annualized EPS of Rs 5.19, by a PE multiple of 72.66.

On 7 February 2008, Ranbaxy Laboratories (RLL) received approval from the US Food and Drug Administration to manufacture and market cefuroxime axetil for oral suspension in United States.

On 7 December 2007, the company received tentative approval from US Food and Drug Administration to make a generic version of Eisai Co's Alzheimer's treatment Aricept.

On 21 November 2007, RLL received approval from Canadian authorities to manufacture and market tamsulosin hydrochloride capsules.

Ranbaxy Laboratories’ net profit declined 65.2% to Rs 48.40 crore on 1.2% fall in net sales to Rs 993.32 crore in Q4 December 2007 over Q4 December 2006.

Ranbaxy Laboratories is India's largest drug maker by sales. It has manufacturing facilities in eight countries.