Ranbaxy posts 2nd-qtr 2011 net profit down 25%

India’s largest drugmaker Ranbaxy (RANB: BO) reported second-quarter 2011 financial results, with sales up a slight 1.1% at 20.59 billion rupees ($461 million), but net profit slumped 25.3% to 54 million rupees and earnings before interest, tax, depreciation and amortization plunged 48% to 2.14 billion rupees.

Commenting on the results, Arun Sawhney, managing director of Ranbaxy - which is 64% owned by Japan’s Daiichi Sankyo (TYO: 4568), said: “We have consciously worked towards strengthening our base business on the one hand and successfully delivering on multiple first to file opportunities [FTF] on the other.”

Ranbaxy said improved top line performance in the quarter has been driven by India, Europe, Romania, Asia Pacific, CIS, Africa and Active Pharmaceutical Ingredients business (API). Project Viraat, Ranbaxy’s initiative for the India market has gained ground with a growth rate of 18% as compared to 15% for the Indian pharma market (IMS year-to-date June 2011). Market share of the company also improved to 4.79% (IMS SSA Audit YTD June 2011), when compared with 4.63% (IMS SSA Audit YTD June 2010).