1. RANBAXY LABORATORIES LTD
By
G. Prashanth kumar
11MBMA59.

2. Overview
 India’s largest pharmaceutical company
 Worldwide Presence
• Ground presence in 49 countries, products sold in over 125 countries
• Manufacturing locations in 8 countries
 Amongst the top 10 global generic pharma companies
 Global consolidated sales: US $ 2.1 Bn (2011)
 Highest R&D spender amongst Indian Pharmaceutical companies
 Over 14000 employees globally represented by 50 nationalities

3. History
 1937- Ranbaxy was founded by Ranjit Singh and Dr Gurbax Singh in
Amritsar.
 1952- Bhai Mohan Singh joined the company as a partner.
 1961- First manufacturing plant in Okhla
 1969- First real breakthrough came with Calmpose
 1973-Ranbaxy goes public
 1977-Ranbaxy first joint venture in Lagos (Nigeria) is setup
 1983-A modern dosage forms facility at Dewas (MP) in India.

4. contd…
 1990-Ranbaxy got its first US Patent, for doxycycline
 1993- Dr Parvinder Singh became CEO of Ranbaxy
 1995- Acquisition of Ohm Laboratories of US.
 1998- Ranbaxy enters USA, world’s largest pharma market with products under
its own name.
 1999- Devinder Singh Brar was appointed as CEO and Managing Director .
 2000-Ranbaxy forays into Brazil, the largest pharmaceutical market in South
America
 2008- Daiichi- sankyo acquired over 51% stake in Ranbaxy
Laboratories Ltd.

5. Capitalisation of opportunities-
1. Process Patent Act 1970
2. Price Control Act 1979

6. Strategic planning
 In 1993- senior management underwent a strategic planning exercise-
vision 2003.
 Aimed to achieve two milestones by the year 2003
1. $1 bn in revenues
2. Development of one new therapeutic molecule

7. Strategies
 Growth Strategy
 The Globalization Strategy
 New drug and dosage form development and
manufacturing

8. Changing the product mix
 Replacing low margin bulk pharmaceuticals with higher margin
formulations
 Value-added/ branded generics
 Non-branded generics
 New drug delivery system
 Proprietary molecules

9. Mergers and Acquisitions
 Parvinder Singh has adopted global strategy through joint ventures and
acquisition to achieve sustainable growth.
 He formed a joint venture Ranbaxy Guangzhou China Ltd (RGCL) in China in
1993
 Entered into the US market with the acquisition of Ohm Labs- a generic
formulation company.
 Global alliance with Eli Lilly to manufacture and market cefaclor in US in
1994.
 Acquired Thai Pharmaceutical Company Unicher in 1995 and formed Ranbaxy
Unicher Co. Ltd (RUCL).
 He acquired another company Rima Pharmaceuticals, the semisynthetic
pencillins maker to sell generics products in Europe.

10.  His basic strategy was to keep the acquired units as profit centres which
helped Ranbaxy to keep acquired firms self sufficient.
 The acquired centre was given full responsibility of profit and loss of
the company.
 The regional managers were given high degree of autonomy.
 He had adopted three tier organizational structures.
1) senior managers
2) regional managers
3) country managers.

11. Recent Acquisitions and alliances
Terapia (Romania) Zenotech (India)
Be-Tabs (South Africa) Krebs (India)
Allen (Italy) Jupiter Biosciences*(Ind.)
Ethimed (Belgium) Cardinal Drugs (India)
Mundogen (Spain) Auto-injector Tech.(USA)

12. World class manufacturing facilities

13. Upgrading R&D
 Ranbaxy possessed an applied R&D capability
 A new basic research capability have to be built from the ground up to
support company’s objective
 In 1997 Ranbaxy spent $12.6 mn and increasingly $67 mn in 2003.
 In 1994 it opened a world class R&D facility in Gurgaon.
 Hiring foreign trained scientists
 In-licensing of molecules developed by Japanese pharmaceuticals
 Spending $100 mn over ten years.

14. R&D
 New Drug Discovery Research  Novel Drug Delivery Systems
Research focus on Infectious  Patented Platform Technologies
diseases, Urology, Metabolic diseases  Several Products based on these
and inflammatory/ respiratory disease
technologies introduced in various
areas
markets
 Strong NCE Pipeline
 Several NDDS based ANDAs
 10 molecules in different stages of filed
drug discovery
 Helps in developing a
differentiated product portfolio

15. NCE Pipeline
Discovery
Preclinical/Clinical Candidates Phase I Phase II
Programme
Metabolic RBx 14374 RBx 10558
Diseases Type 2 Diabetes Dyslipidemia
RBx 11160
Antimalarial Malarial Infection
Urological RBx 11528 RBx 9841
Disorders BPH Overactive Bladder
Anti Infective RBx 14255
Anti-Infectives
(GSK) CARTI*
RTI RBx 14016, 11082
Asthma/COPD
(GSK) PDE IV Inh.
•COPD: Chronic Obstructive Pulmonary Disorder
•Community Acquired Respiratory Tract Infections
•RTI: Respiratory Tract Infection

16. Porter’s Five Forces Model of Competition
 Industry Competition  Bargaining Power of
Competitors of Ranbaxy in India Suppliers.
are:-
 Ranbaxy depends on certain
o Dr. REDDY‘s
organic chemicals .
o CIPLA
 The chemical industry is again very
o NICHOLAS PIRAMAL
competitive and fragmented.
o AUROBINDO PHARMA
o GLAXO SMITH KLINE o The suppliers have very low
o LUPIN
bargaining power and the Ranbaxy
can easily switch from their
o SUN PHRMACEUTICALS
suppliers without incurring a very
o CADILLA HEALTHCARE
high cost.
o WOCKHARDT

17. contd….
 Bargaining Power of  Barriers to Entry
Buyers  Most easily accessible industries
 Buyers are scattered and they for an entrepreneur in India.
as such does not have power in  Capital requirement for an
the pricing of the products. industries is low.
 Government with it’s policies  Creating the brand awareness is
plays an important role in the key for the long term survival
regulating pricing through the
NPPA.

18. contd…
 Threat of Substitute Products
Substitute to allopathic medicine are Ayurvedic and Homeopathic
medicine ,but these are not much in practice in India.

19. Acquisition by Daiichi
 Ranbaxy was facing many issues such as
 poor financial position,
 no major R&D breakthroughs,
 increasing price wars
 stiff competition in the generics market.
 In order to maintain its growth and market position, Ranbaxy
needed an influx of fresh funds.

20.  Daiichi Sankyo wanted to manufacture low cost generics because of Japan
government’s new policy
 In June 2008, Daiichi Sankyo acquired over 51% stake in Ranbaxy Laboratories
Ltd at Rs. 737 per share.
 Malvinder Singh sold out his stake of 34.8% to Daiichi Sankyo .
 The new entity is a significant milestone in the Ranbaxy’s mission of becoming
a research-based international pharmaceutical company.
 Ranbaxy’s competency of low cost manufacturing and Daiichi Sankyo’s
competency of innovation will provide the new entity with a sustainable, long-
term competitive advantage.

21. Ranbaxy-Daiichi Sankyo: Key Synergies