Ranbaxy expands presence in U.S dermatology market

Ranbaxy expands presence in U.S dermatology market

Ranbaxy Laboratories Limited (RLL), announced today that its wholly owned subsidiary, Ranbaxy Laboratories Inc. (Ranbaxy), has acquired from Bristol-Myers Squibb Company (BMS) the U.S. rights to a group of 13 dermatology products. These highly regarded products have been present in the market for over 10 years and have been utilized in the treatment of Acne, Dermatitis, Psoriasis, Fungal infections and Scabies. The U.S. dermatology market value is estimated at USD 10 billion and has experienced growth of 10% per annum.

Ranbaxy already has a strong presence in the acne segment of the dermatology market with its best-selling product, ‘Sotret® Isotretinoin Capsules USP’ for the treatment of severe recalcitrant nodular acne. Sotret® is the largest selling brand among the isotretinoin brands with a market-share in excess of 36 % (Source: IMS: MAT – December 2006).

Commenting on the acquisition, Venkat Krishnan, Vice President and Regional Director for Ranbaxy in North America, said, “The acquisition from BMS of the U.S. rights to 13 dermatology products strengthens and extends the Ranbaxy franchise in the dermatology arena. It enables Ranbaxy to establish an immediate presence in the high value segments of Dermatitis, Psoriasis, Anti-fungals and Scabies, in addition to Acne, where the Company already has a dominant brand.”

The 13 acquired products have significant synergy and represent an opportunity towards building a “dermatology business” with a predictable revenue stream.

These brands will be sold in the U.S. market under the Ranbaxy Laboratories Inc. label and offer significant potential for growth. Ranbaxy believes that incremental sales from the 13 products can be generated through active promotion.

Venkat Krishnan added, “These products collectively create opportunities that can be effectively leveraged through our current franchise established through Sotret®. This business opportunity also creates a broader platform for the introduction of value added line extensions and additional brands as our involvement and commitment to dermatology expands. It underscores our strategy of pursuing inorganic growth opportunities to complement internal growth.”