Tag: Lupin

Pharma analyst names preferred picks in the sector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Param Desai, Research Analyst at Prabhudas Lilladher, lists JB Chemicals and Pharmaceuticals and  Torrent Pharma as his top picks in the midcap space.

“I think that their earnings trajectory looks very positive (for JB Pharma).  Around 80 85% of their profitability comes from domestic pharma plus contract manufacturing, where the visibility is very strong. They can easily double their revenue in the next three to four years on the contract manufacturing side which is a very high margin in nature. So earnings growth visibility is extremely strong for the next two to three years,” he noted.

Any correction in JB Pharma stock can be a good buying opportunity, he added.

Desai also shared his view on the recent quarterly results in the pharma sector.

Cipla results were in line with his estimates and margin, he noted, remained healthy despite the traditionally weak fourth quarter in India.

“Its margin guidance of 24.5% to 25.5% was a positive surprise. Before Q4 numbers, my estimates were slightly below 24.5%. To that extent, it was positive,” he said.

They have a good pipeline of products although it will depend on timeline of launches. There are a few other challenges but there is potential for further uptick in margins.

For Dr Reddy’s, the significant contribution of cancer drug Revlimid in recent years has helped. However, Desai is worried that the base business margins excluding Revlimid have been disappointing.

He believes there is limited visibility in the US market for Dr Reddy’s once the $8 billion blockbuster cancer drug Revlimid benefit wanes off in April-March 2026, leading to a negative stance on the stock.

He is optimistic about Lupin due to the promising pipeline.

He highlighted the potential in the US market over the next four quarters, particularly mentioning the scale-up in Spiriva and upcoming niche launches.

Desai reaffirmed a positive outlook on Lupin, expecting strong performance in both the US market and margins in the near to medium term.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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Lupin shares fall over 6%, pharma major expresses optimism regarding future growth, product launches

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lupin announced its financial results for the January-March quarter of fiscal year 2024 on Monday, May 6. The shares of the pharmaceutical company witnessed a sharp decline of over 6% during morning trades on Tuesday, May 7 reacting to the earnings report.

The company reported a consolidated net profit of ₹359.43 crore, marking a 52% year-on-year rise from ₹235.96 crore in the same period last year. Revenue rose by 13% year-on-year to ₹4,895.11 crore from ₹4,330.3 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 66% year-on-year to ₹1,026.1 crore from ₹615 crore.

Despite the strong financial performance, Lupin’s shares experienced a sharp decline of over 6% during morning trades on Tuesday. The stock reached an intra-day low of ₹1,581.10 per share on the National Stock Exchange (NSE).

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In an interaction with CNBC-TV18, Vinita Gupta, CEO, Lupin, expressed optimism regarding future growth and product launches, particularly in the US market. She emphasised Lupin’s efforts to bring affordable versions of important drugs to the market. Gupta stated, “Depending on what happens with Myrbetriq, there should definitely be a good upside.”

US sales in Q4 FY2024 were ₹1,900.6 crore, accounting for 39% of Lupin’s global sales, with a marginal increase of 0.6% compared to the previous quarter. India sales in Q4 FY2024 were ₹1,601.5 crore, accounting for 33% of Lupin’s global sales, showing a decrease of 7.2% compared to the previous quarter. Global API sales in Q4 FY2024 were ₹258.1 crore, accounting for 5% of Lupin’s global sales, showing a decrease of 7.1% compared to the previous quarter.

The EBITDA margin stood at 14.2%, compared to 11.5% in the year-ago period. Profit Before Tax was impacted by an impairment charge of ₹201.3 crore. Investment in research and development (R&D) for the quarter was ₹425.5 crore, accounting for 8.7% of sales.

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Ramesh Swaminathan, ED & CFO, Lupin, highlighted the company’s focus on margin improvement and expressed confidence in sustaining a 20% margin over the next several quarters. He noted, “The buoyancy on the top line is certainly going to continue.”

Nilesh Gupta, MD, Lupin, acknowledged the challenges faced in the Indian market but expressed confidence in the company’s growth prospects, especially in areas like cardiology and respiratory. He stated, “April has started strong and we would expect growth to continue.”

Looking ahead, Lupin remains optimistic about sustaining growth and margin improvement, particularly in the US market. The company aims to continue its focus on product launches and expanding its presence across various therapeutic segments.

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Lupin Q4 Results | Net profit jumps 52% to ₹359 crore, declares dividend of ₹8

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Drug maker Lupin Ltd on Monday (May 6) reported a 52.4% year-on-year (YoY) jump in net profit at ₹359.4 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, Lupin posted a net profit of ₹235.9 crore, the company said in a regulatory filing. A CNBC-TV18 poll had predicted a profit of ₹498.9 crore for the quarter under review.

The company’s revenue from operations increased 12% to ₹4,960.7 crore as against ₹4,430 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of ₹5,057.7 crore for the quarter under review.

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At the operating level, EBITDA jumped 72.5% to ₹996.8 crore in the fourth quarter of this fiscal over ₹577.7 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹5,057.7 crore for the quarter under review.

EBITDA margin stood at 20.1% in the reporting quarter as compared to 13% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The poll had predicted a margin of 19.3% for the quarter under review.

Lupin experienced a personnel cost amounting to 18.4% of sales, totalling ₹900.2 crore. This marked a slight increase from the previous quarter, where personnel costs stood at ₹889.2 crore. Manufacturing and other expenses constituted 30.4% of sales, amounting to ₹1490.1 crore in Q4 of FY24. At the same time, this figure represented a decrease from the previous quarter’s ₹1,560.2 crore.

However, the company faced a notable decline in Profit Before Tax (PBT) during the fourth quarter, primarily due to an impairment charge of ₹201.3 crore. Lupin continued to prioritise investment in Research and Development (R&D), allocating ₹425.5 crore, which accounted for 8.7% of sales for the quarter.

Nilesh Gupta, Managing Director of Lupin, said, “We continue to move forward with sustainable and profitable growth and delivered another strong set of numbers in Q4. Our US sales remain healthy driven by inhalation products, and our India formulation business is delivering ahead of the market.

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“While FY24 has been a year of resurgence for the company, we look forward to an even stronger FY25 driven by growth across our key geographies and consistent improvement in our margins.”

The board has recommended a dividend 400% i.e. ₹8 per equity share of a face value ₹2 each for the year ended March 31, 2024, subject to approval at the ensuing Annual General Meeting. The total outflow would be ₹364.6 crore.

The results came after the close of the market hours. Shares of Lupin Ltd ended at ₹1,679.75, up by ₹24.50, or 1.48% on the BSE.

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Pharma major Lupin receives US FDA approval for generic eye solution

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global pharmaceutical giant Lupin announced on Monday (May 6) that it has secured approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for travoprost ophthalmic solution USP, 0.004% (ionic buffered solution).

This approval allows Lupin to market a generic equivalent to the reference listed drug (RLD) Travatan Z ophthalmic solution, 0.004%, which is manufactured by Sandoz Inc.

The generic product, travoprost ophthalmic solution USP, 0.004%, will be produced at Lupin’s facility in Pithampur, Madhya Pradesh.

Travoprost ophthalmic solution USP, 0.004%, is specifically indicated for the reduction of elevated intraocular pressure in patients diagnosed with eye conditions like open-angle glaucoma or ocular hypertension. This approval is poised to offer patients in the United States access to a more affordable alternative.

According to IQVIA MAT March 2024, the reference listed drug (RLD) Travatan Z ophthalmic solution, 0.004%, had estimated annual sales of $77 million in the US.

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USFDA issues inspection report for Lupin’s Aurangabad manufacturing facility

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Drug maker Lupin Ltd on Tuesday (April 23) said it has received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (US FDA) for its Aurangabad manufacturing facility.

The inspection was conducted from March 6 to March 15, 2024. The US FDA has determined that the inspection classification of the facility is Voluntary Action Indicated (VAI), Lupin said in a regulatory filing.

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Nilesh Gupta, managing director of Lupin, said, “We are pleased to receive the EIR with VAI status from the US FDA as an outcome of the recent inspection of our Aurangabad facility.

It is a testament to our commitment to consistently upholding the highest standards of compliance and providing high-quality healthcare solutions to patients worldwide.”

Shares of Lupin Ltd ended at ₹1,580.55, down by ₹26.25, or 1.63% on the BSE.

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Lupin gets USFDA nod to launch generic tablet to treat overactive bladder

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lupin Ltd (NSE: LUPIN) has announced the launch of Mirabegron, a generic version of Mybetriq used to treat overactive bladder in the United States, it informed the BSE in a filing late Saturday evening. The announcement from the Mumbai-headquartered pharma major came after it received approval from the United States Food and Drug Administration (USFDA).

Mirabegron is the generic equivalent of Myrbetriq and is manufactured by Astellas Pharma Global Development. Lupin had earlier informed that the product would be manufactured at its facility in Nagpur, India.

Myrbetriq, a prescription medicine, is used in the treatment of an overactive bladder with symptoms of frequent or urgent urination and urinary incontinence. It is also used to treat neurogenic detrusor overactivity (NDO) in children.

According to IQVIA MAT February 2024, Mirabegron had estimated annual sales of $1,019 million in the United States, the company’s exchange filing said.

Lupin’s Executive Director and Global CFO, and Head of Corporate Affairs, Ramesh Swaminathan, expects the pharmaceutical company to clock quarterly US sales in the range of $200–210 million this year, given the lineup of existing and upcoming products. The North American market contributes roughly 37% to Lupin’s sales, while India is around 34%.

Lupin launched the first generic version of Oracea (Doxycycline capsules, 40 mg) on April 9 in the United States. Oracea capsules are used in the treatment of inflammatory lesions (papules and pustules) of rosacea in adult patients.

Lupin also recently announced the successful closure of inspections by the USFDA at its manufacturing facility located in Vadodara, Gujarat.

Lupin develops and commercialises a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the US, India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.

Lupin shares settled nearly 3% lower on Friday, quoting at ₹1,547 apiece on the NSE. So far this year, Lupin stock price has surged nearly 18%, while the one-year gain on the stock is 120%.

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Lupin forecasts $200-210 million quarterly sales for US operations this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lupin’s Executive Director and Global CFO, and Head of Corporate Affairs, Ramesh Swaminathan, expects the pharmaceutical company to clock quarterly US sales in the range of $200-210 million this year given the lineup of existing and upcoming products.

The North American market contributes roughly 37% to Lupin’s sales, while India is around 34%.

Swaminathan said price erosion in the US market is also a lot more benign these days,

“It is in the single-digit numbers so far as the OSD Oral Solid Dosage  portfolio is concerned,” he said.

He attributed this trend to companies streamlining their portfolios and divesting from less profitable ventures.

He also noted the changes in the interest rate regime, leading to decreased competition in certain sectors, including OSD products.

This Mumbai-based drug maker on April 9 launched the first generic version of Oracea (Doxycycline capsules, 40 mg) in the United States.

Oracea capsules are used in the treatment of inflammatory lesions (papules and pustules) of rosacea in adult patients.

Brokerage firm Nomura reiterated its ‘buy’ rating on Lupin with a target price of ₹1,949 a share citing that the new launch is a positive.

Lupin has also received approval from the US Food and Drug Administration (USFDA) to distribute Valbenazine Capsules in strength of 40 mg and 80 mg.

The drug, which has an estimated market size of  $1.6 billion, will manufactured at the Nagpur facility in India. .

The company has also received USFDA approval for Eslicarbazepine Acetate Tablets, a generic version of Aptiom.

Swaminathan highlighted that all these new additions will help chip in to overall sales of the company.

He also discussed the importance of Lupin’s respiratory portfolio, which has been a focus for growth, and other areas of expansion such as injectables.

Lupin’s current market capitalisation is around ₹73,919.80 crore. The stock has gained 146% over the last year.

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Lupin’s Gujarat facility successfully clears USFDA inspection with no observations; stock surges

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Lupin Ltd shares gained over 2% on Friday, after the company announced the successful closure of inspections by the United States Food and Drug Administration (USFDA) at its manufacturing facility located in Vadodara, Gujarat.

In a filing to the stock exchanges, the pharmaceutical company informed that a Good Manufacturing Practice (GMP) inspection has been completed at the company’s API (active pharmaceutical ingredient) manufacturing facility located at Dabhasa in Gujarat.

The US health regulator conducted the GMP inspection from April 8 to April 12, 2024. The inspection has been completed with no observations, the company said in an official release.

“This accomplishment underscores our unwavering dedication to maintaining the highest standards of quality and compliance in all aspects of our operations. This reaffirms our pursuit of excellence in delivering high-quality, affordable healthcare for all,” said Lupin’s Managing Director, Nilesh Gupta.

Earlier this week, Lupin launched the first generic version of Oracea (doxycycline capsules, 40mg) in the United States after receiving approval from the USFDA.

Doxycycline capsules 40 mg is indicated for the treatment of skin infections like inflammatory lesions (papules and pustules) of rosacea in adult patients.

For the quarter ended on December 31, 2023, Lupin reported a net profit of ₹613.1 crore, making a stellar jump of 299.6% on a year-on-year (YoY) basis from ₹153.4 crore posted in the same quarter last year.

The company’s revenue from operations made a double-digit growth of 20.2% to ₹5,197.4 crore in the December quarter compared to ₹4,322.2 crore in the corresponding quarter of last year.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹1,037.9 crore, growing 95% YoY from ₹1,037.9 crore in the year-ago period.

Shares of Lupin closed 1.19% higher at ₹1,624.65 apiece on the BSE on Friday.

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Pharma Q4FY24 earnings preview | Robust US performance expected to drive revenue growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharmaceutical companies are likely to report around 12-14% healthy year-on-year (YoY) revenue growth and as much as 26-27% earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth for January-March 2024 as a steady quarter in the US offsets a seasonally weak domestic market.

The US markets could grow as much as 22% YoY, higher than the four-quarter growth average of around 17-18%.

This expansion will be aided by easing price pressure and sales of key drugs, especially continued sales from the blockbuster cancer drug Revlimid generic.

Here’s how the US market sales could look like company-wise

• Dr Reddy’s Laboratories (DRL) could see around 5% quarter and quarter (QoQ) growth, which would be led by over $100 million from Revlimid generic and aided by the integration of the main portfolio.
• Zydus is expected to grow over 20% QoQ led by Revlimid generic again, which could add as much as $50 million for the company, according to some estimates.

• Cipla’s sales could be tempered due to a loss of market share for the respiratory drug Albuterol.
• Sun Pharma could see around 2% QoQ growth led by their speciality portfolio of drugs, which has been doing well consistently.

• Lupin will benefit from the inhaler Spiriva generic driving around a 4% QoQ growth for the company in the US.

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Domestic market for Lupin is likely to grow around 10-11% driven by sales of chronic drugs and a recovery in acute therapy drugs.

JB Chemicals and Mankind are likely to outperform with an over 20-25% growth in the domestic market.

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Margins will be aided by niche products in the US and lower operational costs. Estimates are margins could expand by as much as over 250 basis points.

Also, watch for higher CDMO sales QoQ pushing up earnings for Divis Laboratories as well as Laurus Labs.

Margin improvement and commentary will be key for both these companies as the Street will watch for cues on big orders from multinational companies (MNCs) and progress on opportunities such as GLP 1 drugs.

Lastly, analysts will watch out for an update on US pricing from Aurobindo, Lupin and others, pending US FDA issues for Cipla, Sun Pharma, Biocon and commentary on fundraising from the likes of Biocon.

Also Watch | Vishal Manchanda, Pharma Analyst at Systematix Group, talked on CNBC-TV18 about what to expect in the pharmaceutical sector for the Q4 of FY24.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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Lupin launches first generic version of Oracea skin treatment capsules in US

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Drug maker Lupin Ltd on Tuesday (April 9) said it has launched the first generic version of Oracea (doxycycline capsules, 40 mg) in the United States.

This milestone follows the company’s approval from the United States Food and Drug Administration (US FDA) for the product, Lupin said in a regulatory filing.

Doxycycline capsules, 40 mg is indicated for the treatment of inflammatory lesions (papules and pustules) of rosacea in adult patients, Lupin mentioned.

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According to estimates, doxycycline capsules, 40 mg had annual sales of approximately $128 million in the US market as of February 2024, the company added.

Lupin reported a 299.6% year-on-year (YoY) jump in net profit at ₹613.1 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, Lupin posted a net profit of ₹153.4 crore.

The company’s revenue from operations increased 20.2% to ₹5,197.4 crore against ₹4,322.2 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA jumped 95% to ₹1,037.9 crore in the third quarter of this fiscal over ₹532.2 crore year-on-year.

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The EBITDA margin stood at 20% in the reporting quarter against 12.3% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 17% for the quarter under review.

Shares of Lupin Ltd ended at ₹1,605.00, down by ₹7.65, or 0.47%, on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow