Lupin falls over 4% in two sessions on Suprax generic concerns

MUMBAI: Shares of Lupin have extended losses for second straight session after the USFDA allowed Aurobindo Pharma to sell a generic antibiotic drug Cefixime.

Lupin was down 3.47 per cent in intraday trade on Thursday. It has nearly slipped 5 per cent in past two sessions.

The antibiotic is equivalent to the branded generic Suprax of Lupin Pharmaceuticals Inc.

Cefixime is used for the treatment of adults and pediatric patients six months of age or older, with infections caused by susceptible strains of the designated organisms in urinary tract infections, otitis media, acute exacerbations of chronic bronchitis, uncomplicated gonorrhea (cervical/urethral), pharyngitis and tonsillitis.

It had estimated sales of $123 million for the 12 months ended February in the US.

Aurobindo Pharma said the US Food and Drug Administration (USFDA) has permitted it to manufacture and sell the drug for oral suspension under 100mg/5ml and 200mg/5ml dosage forms.

“Suprax is financially less relevant than it ever was, thanks to LPC’s rapidly growing US generics sales; however, it raises questions over its US brand strategy, given the lack of any late-stage products in its internal pipeline,” said Kotak Institutional Equities report.