Lupin: US launches, better movement of rupee add value

Drugmaker Lupin’s performance in the quarter to December indicates a better showing by the company in the second half of the current fiscal. It has posted a consolidated revenue growth of 21%, the highest over the past three quarters, owing to the launch of its limited competition generic products in the United States and favourable currency movement.

The operating margin of 26% is also the highest since the beginning of the financial year. At Rs 476 crore, the company’s net profit is double than that in the corresponding quarter two years ago.

The company’s generics business in the US benefited from the launch of limited competition products, including Tricor, Trizivir and Cymbalta. However, the branded business, which has four main products, suffered a slowdown in the US and remains a matter of concern. With most of the trade-related issues pertaining to the new drug pricing policy getting settled, the company’s domestic business recovered smartly and posted a 14% growth in revenues – higher than the industry’s single-digit growth.

Revenues from the Japanese business were dented on account of currency depreciation and negative performance of its subsidiary Irom. In a short span of two years, Lupin has emerged as one of the most promising pharma stocks. It is now the second most valuable pharma company on the bourses.