Ranbaxy announced that it has declared the results for its second quarter ended June 2010.

According to the company officials, the Q2CY10 results were better than the estimations with sales and net income at Rs 21.5 billion and Rs 3.6 billion respectively.

It should be noted that YoY comparisons are not significant given the exclusivity supplies in US and forex gains/losses.

The company estimate base business margins to be 13% levels for Q2CY10 same as that in Q1CY10.

The management sounded optimistic of a comprehensive resolution of the Department of Justice (DoJ) and USFDA issue in a few months, which would also have a road map for the resolution of Poanta Sahib plant that has an AIP imposed on it.

Towards a comprehensive resolution of USFDA issue Substantial forward movement has happened on the FDA issue and the management expects a comprehensive resolution of both the DoJ enquiry and the USFDA issue in the next few months.

This means that the plan for the resolution will be approved by the USFDA for both the Dewas facility and the Poanta Sahib facility.

Other key points include:

1) Nexium API supplies to begin anytime now and formulations supplies from Jan'2011.
2) Possibility of a couple of FTFs in H2CY10
3) Results of the 1500 additions to India field force will be seen from Sept'2010 onwards
4) Sale of Innovative R&D unit to Daiichi at Rs1.4bn involves transferring some fixed assets while IP of the anti-malarial compound and the GSK compound remains with Ranbaxy.
5) First launch of products from India for the Japanese market is at least 2 years away