Ranbaxy's generic launch delay upsets analysts' earnings forecast

MUMBAI: Analysts' earnings estimate for Ranbaxy Laboratories in 2009 could be revised downwards due to the delay in launch of a copycat version of anti-migraine drug, Imitrex.

The New Delhi-based pharma major, which is awaiting US Food and Drug Administration's approval, has lost about half a month's exclusivity period due to a delay, according to brokerage Sharekhan.

"We expected potential earnings of $29 million (roughly Rs141.32 crore) from the 180-day exclusivity period of Imitrex," the analyst said in a report. "We had estimated $4 million of revenues from Imitrex in CY2008 and over $54.2 billion of revenues in CY2009. We believe there could be risk to our estimates now."

A delayed launch of the drug by Ranbaxy may not help matters either, as rival companies would have consolidated their position in the space, according to the analyst.

"Dr Reddys Laboratories and Par Pharmacueticals have already launched the generic version of Imitrex in November 2008, while Cobalt Pharmaceuticals is expected to launch the product around January 2009," the analyst added.

At 11:00 AM, Ranbaxy shares were up 1.7% at Rs 254.05.