Lupin acquires US-based Gavis Pharma for 5,600 crore; Q1 PAT down 16%, stock slumps

MUMBAI: Shares of pharmaceuticals major Lupin plunged about 6 per cent in intraday on Thursday as the company disappointed with its Q1 results on both net profit and revenues front due to slowdown in the US business. The stock ended the day at Rs 1,728.60; down 5.23%, on the BSE.

Separately, the company announced that it has acquired US-based Gavis Pharma for $880 million (about Rs 5,600 crore) to expand its generic business.

The company reported consolidated net profit of Rs 525 crore in April-June, down 16 per cent, from Rs 625 crore in the same quarter last fiscal.

Consolidated sales slipped to Rs 3,074 crore, down 6.4 per cent, compared to Rs 3,284 crore a year ago.

Consolidated margins fell to 26.6 per cent vs 33.9 per cent.

Sales from the US declined to $180 million vs $262 million a year ago.

Lupin remains focussed on research pipeline, compliance and on acquiring meaningful assets, the company said in a statement.

According to analysts tracking the stock, the management had indicated margins pressure but such a sharp cut was not expected.