Mumbai, Sept. 13: Domestic pharmaceutical firm Ranbaxy Laboratories Ltd is expanding its footprint in Europe. The company today announced its entry into Italy with the launch of a wholly owned subsidiary, Ranbaxy Italia S.P.A., in Milan.

Ranbaxy is charting an organic growth route and is planning to introduce generic drugs into its international product portfolio by early 2006.

With the foray into Italy, Ranbaxy is expected to consolidate its presence in the top five European pharmaceutical markets. It also marks the company’s presence in 21 of the 25 EU countries.

According to Ranbaxy, Italy is the fourth largest pharmaceutical market in Europe after the UK, Germany and France, with the total size being put at $16.5 billion as of December 2003.

Ranbaxy is optimistic about the Italian venture, as the government there has been encouraging generics to reduce the cost of healthcare. Further, it is also gearing up to cash in on the expiry of some blockbuster drug patents, which is expected by 2008-09.

Commenting on the launch of its Italian operations, Malvinder Mohan Singh, president, pharmaceuticals, Ranbaxy, said, “We are committed to this task and will soon be introducing a number of products in Italy.”

Ranbaxy, which is now emerging as a multinational pharmaceutical company, saw European markets generating $54 million sales during the second quarter of this fiscal against a global sales of $309 million. Sales in Europe increased 27 per cent compared with last year.

The combined geographies of the UK, France and Germany constituted 69 per cent of the total EU sales at $37 million. During the first half, sales in the region were up 6 per cent at $98 million with the UK, Germany and France accounting for $72 million.

Ranbaxy has been focussing on Europe as the generics business in the US is facing a tough competition.