Lupin Pharma bets on US & emerging markets for future growth
Shrikant / 09 Nov 2011
Pharma major Lupin announced its Q2FY12 results today. The company reported a top-line growth of 24% on the back of increased sales in all its geographical regions.
It company also posted a robust 24% growth in its net profit at Rs 266.9 cr. Its EBITDA margins jumped to to 23% this quarter on the back of reduced material and personal cost.
Its revenues from regulated markets (US and Europe) increased by 16%. The company has expanded its portfolio of generics products which has yielded 19% growth in branded business and 14% growth in generics in the US market.
During the quarter, Lupin launched Metformin ER Tablets after receiving approvals from the USFDA. It also entered into a licensing agreement with Medicis Pharmaceutical Corporation to apply proprietary Lupin formulation technologies to multiple therapeutic compounds, for which the company received a $20 million upfront payment during the quarter. Lupin will also be eligible for income of $38 million for future research and development.
The company has clocked a robust growth rate of 61% in South Africa as well.
Its Japanese subsidiary, Kyowa grew by 14% to Rs 178 cr during the quarter and contributed 10% of the overall revenues. In the other emerging markets, its earning revenues by 14% to Rs 91.2 cr.
ANDA is the main growth driver for export businesses of Indian pharmaceutical companies. Lupin has received 3 ANDA approvals and has filed for another approval in the US. It has a robust pipeline of 153 ANDAs in this quarter. In Europe, Lupin received 5 MAA approvals this quarter. The cumulative filings for EU stands at 102, of which 51 have been approved.
Overall, the company has shown growth in all its geographies and segments. It also has a robust pipeline of ANDAs. Going forward, new alignments with Medicis Pharmaceutical Corporation will help improve its margins. With the new products getting approvals and its prescription sales growing, we at DSIJ expect the growth momentum to continue.
It company also posted a robust 24% growth in its net profit at Rs 266.9 cr. Its EBITDA margins jumped to to 23% this quarter on the back of reduced material and personal cost.
Its revenues from regulated markets (US and Europe) increased by 16%. The company has expanded its portfolio of generics products which has yielded 19% growth in branded business and 14% growth in generics in the US market.
During the quarter, Lupin launched Metformin ER Tablets after receiving approvals from the USFDA. It also entered into a licensing agreement with Medicis Pharmaceutical Corporation to apply proprietary Lupin formulation technologies to multiple therapeutic compounds, for which the company received a $20 million upfront payment during the quarter. Lupin will also be eligible for income of $38 million for future research and development.
The company has clocked a robust growth rate of 61% in South Africa as well.
Its Japanese subsidiary, Kyowa grew by 14% to Rs 178 cr during the quarter and contributed 10% of the overall revenues. In the other emerging markets, its earning revenues by 14% to Rs 91.2 cr.
ANDA is the main growth driver for export businesses of Indian pharmaceutical companies. Lupin has received 3 ANDA approvals and has filed for another approval in the US. It has a robust pipeline of 153 ANDAs in this quarter. In Europe, Lupin received 5 MAA approvals this quarter. The cumulative filings for EU stands at 102, of which 51 have been approved.
Overall, the company has shown growth in all its geographies and segments. It also has a robust pipeline of ANDAs. Going forward, new alignments with Medicis Pharmaceutical Corporation will help improve its margins. With the new products getting approvals and its prescription sales growing, we at DSIJ expect the growth momentum to continue.
| Q2FY12 | Q2FY11 | Growth | |
| Sales | 1752.15 | 1418.54 | 24% |
| Total income | 1772.39 | 1433.96 | 24% |
| Total expenditure | 1368.35 | 1135.3 | 21% |
| Depreciation | 52.19 | 43.5 | 20% |
| EBITDA | 404.04 | 298.66 | 35% |
| EBITDA Margin | 23% | 21% | |
| Other income | 1.62 | 1.4 | 16% |
| Interest | 6.64 | 8.75 | -24% |
| Tax expenses | 75.08 | 27.12 | 177% |
| Net profit | 271.75 | 220.69 | 23% |
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