The stocks of Ranbaxy and its new owner - Sun Pharma drove up the otherwise-docile BSE Healthcare Index higher on Tuesday. Strong September quarter performance triggered the 7 per cent rally in the stock.

Thanks to Ranbaxy’s healthy performance, Sun Pharma, which will merge Ranbaxy with itself by end of this year, also gained 5 per cent in trade on Tuesday.

Ranbaxy’s consolidated revenues grew over 16 per cent for the quarter, driven by exclusive launch of generic version of Novartis’ hypertension drug brand Diovan in the US. Being the first generic filer for this drug, Ranbaxy will be the only generic player for a period of 160 days.

Diovan, which was launched end-June this year, after a 20-month long wait, should provide a leg up to Ranbaxy’s performance in the December quarter too.

Robust operating profit margin for the hypertension drug, aided the four-fold increase in Ranbaxy’s operating profit, from about ₹200 crore last September to over ₹807 crore. In addition to a strong operating performance, sharp reduction in marked-to-market losses on foreign currency hedging contracts (from ₹302 crore in September 2013 to about ₹22 crore this year) enabled the company clock ₹478 crore profit last quarter, compared with a ₹454 crore loss in the same period last year. ​