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Ranbaxy Labs expands U.S. dermatology market presence
PRINCETON, N.J.— Ranbaxy Laboratories Inc., a wholly owned subsidiary of Ranbaxy Laboratories Limited, recently announced that it acquired from Bristol-Myers Squibb Co. the U.S. rights to a group of 13 dermatology products.
These acquired products have been in the market for more than 10 years and have been used in the treatment of acne, dermatitis, psoriasis, fungal infections and scabies. The total U.S. dermatology market is estimated at $10 billion annually and has experienced growth of 10 percent per annum.
Commenting on the acquisition, Venkat Krishnan, vice president and regional director for Ranbaxy in North America, said, "The acquisition from BMS of the U.S. rights to 13 dermatology products strengthens and extends the Ranbaxy franchise in the dermatology arena. It enables Ranbaxy to establish an immediate presence in the high value segments of dermatitis, psoriasis, anti- fungals and scabies, in addition to acne, where the Company already has a dominant brand."
Ranbaxy already has a strong presence in the acne segment of the dermatology market with its best-selling product "Sotret Isotretinoin Capsules USP" for the treatment of severe recalcitrant nodular acne. Sotret is the largest selling brand among the isotretinoin brands with a market-share reportedly in excess of 36 percent
The 13 acquired products represent an opportunity toward building a "dermatology business" with a predictable revenue stream. The brands will be sold in the U.S. market under the Ranbaxy Laboratories Inc. label and Ranbaxy believes that incremental sales from the 13 products can be generated through active promotion.
"These products collectively create opportunities that can be effectively leveraged through our current franchise established through Sotret," Krishnan says. "This business opportunity also creates a broader platform for the introduction of value-added line extensions and additional brands as our involvement and commitment to dermatology expands. It underscores our strategy of pursuing inorganic growth opportunities to complement internal growth."