Ranbaxy buys 13 dermatology brands from Bristol-Myers

Mumbai: Ranbaxy Laboratories Inc., wholly owned subsidiary of Ranbaxy Laboratories Ltd. (Ranbaxy), has acquired the US rights to a group of 13 dermatology brands from Bristol-Myers Squibb Co.(BMS) for $26 million, the company said in a communiqué to the Bombay Stock Exchange (BSE).

The acquisition would enable the company to establish an immediate presence in segments such as dermatitis, psoriasis, scabies and anti-fungal, in addition to acne, where the company already has a dominant brand, vice president and regional director for Ranbaxy in North America Venkat Krishnan said.

It also creates a broader platform for the introduction of value-added line extensions and additional brands as our involvement and commitment to dermatology expands, he said.

"It underscores our strategy of pursuing inorganic growth opportunities to complement internal growth," he added.

These brands would be sold in the US market under the Ranbaxy Laboratories Inc label and offer significant potential for growth. Ranbaxy expects the 13 products, with a US presence of over 10 years, to contribute significantly to its incremental sales volume.

"These products collectively create opportunities that can be effectively leveraged through our current franchise established through Sotret," Krishnan said.

Ranbaxy already has a strong presence in the acne segment of the dermatology market with Sotret Isotretinoin Capsules USP for the treatment of severe recalcitrant nodular acne.

According to IMS MAT - December 2006, Sotret is the largest selling brand among the isotretinoin brands with a market-share in excess of 36 per cent.

The US dermatology market value is estimated at $10 billion and has experienced growth of 10 per cent per annum.

RPI, a wholly owned subsidiary of Ranbaxy Laboratories Ltd, established operations in the US in 1994, and began marketing ANDA approved generic products in 1998 after receiving FDA approval for Cefaclor, a broad spectrum anti-infective agent. Since 1998, RPI has achieved significant milestones by achieving sales of $426 m in 2004.

Headquartered in Rueil-Malmaison, France, Bristol-Myers Squibb''s employees work in offices, research and development labs, manufacturing plants distribution facilities located in almost and every country around the world.