Ranbaxy to foray into France

NEW DELHI: After the recent entry in Japan, Ranbaxy Labs is finalising plans to enter France. It will enter France by early 2003, company sources said. The objective of Ranbaxy is to spread the network in Europe by getting into France, the second biggest generics market after Germany, sources said. In Europe, Ranbaxy is present in the Netherlands, the US, Germany and CIS countries.Entry into France would be followed by Mexico, another important generics market, during later part of 2003.
Recently, Ranbaxy has entered Japan by picking up a 10 per cent stake in $13 billion Nihon Pharmaceutical, a subsidiary of Nippon Chemipher. However, for for France, Ranbaxy has ruled out JV and decided to follow its global business model. Initially, the pharma major will launch its branded generics through general distributors of France. Then, after a year or so, it will launch its own offices and distribution network. While Ranbaxy has already started a media campaign in local dailies of France, it is finalising the generics range to be launched in that country. Ranbaxy’s global expansion plan has got a boost with success in the US operation.
It hopes to touch sales of $275 million in US by December 2002, sources said. In first nine months of 2002 (September-end) the company has touched $207 million turnover from the US operation. Sources added that Ranbaxy’s bullish US target is primarily based on a soon- expected FDA approval for launching a generic version of Roche Pharmaceutical’s Accutane.
While Roche’s patent for Accutane, a drug for skin treatment (primarily acne-formation) has expired early 2002, the drug has a market of around $900 million in the US. Ranbaxy will be first to enter the generics market of this blockbuster drug. Accutane is a difficult drug to make with risk of side effects on central nervous system. Roche is trying to block Ranbaxy’s entry and filed a ‘citizen’s petition’, saying FDA should be careful about giving the generic launch approval in view of the side effects.