Pharmaceuticals major Ranbaxy, which has found itself caught in controversies and falling financial performance, is reportedly looking at exiting some smaller markets as part of its cost optimisation plans.
The company may exit markets such as Peru, which do not contribute significantly to its profit margins.
Without divulging details, a Ranbaxy spokesperson said: “Ranbaxy’s overall strategy will be to secure leadership in select therapeutic areas and emerge as a leading company in certain key markets that we have identified.”
The company expects markets such as India, the US, Canada, Malaysia, Australia, Japan, China, South Africa, Nigeria, Egypt, and Morocco to play a major role in future growth and as such focus on these is likely to be high.
Hybrid model
The company spokesperson added that Ranbaxy would look at both organic and inorganic growth and would also adopt a hybrid business model in some markets.
“Under the hybrid business model, we will shape more synergistic strategies to provide both generic and innovative medicines to people across the world.
“We have identified various countries and geographies in terms of how we will run the business and in which therapeutic segment,” the spokesperson said.
According to the pharma firm, the aim is to attain a leading position through “monetisation of our ANDAs (Abbreviated New Drug Applications), differentiated product strategy, cost optimisation, improvement in productivity, effective utilisation of distribution network and superior manufacturing capability.”
The company has ground operations in 43 countries and sells its products in over 150 countries.
global presence
“We have an enviable presence in the emerging markets that are expected to experience growth in the range of 12-15 per cent per annum,” the spokesperson said.
The drug major is optimistic that by 2016 these markets will add $180 billion and that Ranbaxy will be in a position to leverage this expansion.