News on Lupin Ltd

Lupin receives FDA Approval for Nabumetone tablets  | 14/01/11
[Source: www.bseindia.com ]

Lupin Limited announced today that its U.S subsidiary, Lupin Pharmaceuticals, Inc. (LPI) has been granted final approval for its Nabumetone tablets, 500 mg and 750 mg strengths from the U.S. Food and Drug Administration.

Lupin’s Nabumetone is the AB-rated generic equivalent of GlaxoSmithKline’s RELAFEN tablets indicated for acute and chronic treatment of the signs and sympto of osteoarthritis and rheumatoid arthritis.  Annual sales for the Nabumetone market in the US was $66.8 mn for the twelve months ended September 2010, based on I Health sales data.

News on Lupin Ltd

Lupin signs strategic agreement with FARMANGUINHOS, Brazil | 05/01/11
[Source: www.bseindia.com ]

Lupin Ltd announced that it has entered into an agreement with Farmanguinhos, Brazil's largest PSU in health care for the supply of its 4 in 1 combination drug of Rifampicin, Isoniazide, Ethambutol and Pyrazinamide for tuberculosis. Lupin will supply the product for the next five years and also provide Farmanguinhos with the desired support for the set up of its local manufacturing in future.

With this agreement between Lupin and Farmanguinhos in place, Farmanguinhos has entered into a commitment to produce and supply the 4 in 1 combination drug to the Department of Health (Brazil), which will result in substantial savings for the government.

The 4 in 1 combination reduces the pill burden on the patient drastically, particularly as the treatment lasts for at least six months. As per WHO, the treatment abandonment rate has fallen from 8 per cent to only 5 per cent due to this reduced pill burden provided by the combination drug. WHO estimates indicate that globally there are 9.2 million new cases each year resulting in 1.7 million deaths.

Analysis of Lupin Ltd

Introduction

Lupin Ltd is among the top 5 pharmaceutical companies in India, with a market capitalisation of Rs 20,000 Cr. What differentiates it from the other Indian pharma giants is its foray into the US market with a branded paediatric drug Suprax. With, the branded drug, they can boast of a bigger profit margin as compared to its Indian peers. In the coming year or two, Lupin is going to launch few more branded drugs, which increases its potential of growth in US.

With small acquisitions across the globe, viz Kyowa Pharma - Japan, Pharma Dynamics - South Africa, Multicare Pharma - Phillipines and Generic Health - Australia, they have obtained a toe hold in both emerging as well as developed markets, which they can leverage to their advantage.

Financials

Standalone sales for Q2FY11 stand at Rs 1073.09 Cr as against Rs 1009.36 Cr. This discounts the growth caused by the acquiations, which saw the consolidated sales growing from Rs 1114.69 Cr in Q2FY10 to Rs 1405.05, a growth of 26%.

At the same time consolidated PAT grew from  Rs 164.62 Cr to Rs 220.69, a growth of 34%, which shows an increasing margin.