Lupin Q1 profit up 55% on the back of overseas business

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Drug maker recorded a of Rs 881.9 crore in the first quarter of the financial year 2016-17 , up 55 per cent from Rs 568.5 crore during the same period last year. This is the best quarterly numbers from Lupin so far, aided by its fast growth in the US and Japan markets.

The company’s net income from operations has also showed an upward trend, touching Rs 4,439.4 crore, up 40% from Rs 3,156 crore in the June quarter last year.

The company has invested increasingly in research and development. The investment in R&D was Rs 499.4 crore in the June quarter of FY2016-17, up from Rs 313 crore in the corresponding period last year.

Speaking to Business Standard, Kamal Sharma, vice-chairman of Lupin, said that the growth in the Indian market had been flat at 5% predominantly due to the ban on fixed dose combination drugs, He stated that growth in Japan was around 11% due to a strong Yen.

Lupin maintains that the US will be the most attractive market for them given the transparency in regulations.

The company has plans to spend around Rs 150-200 crore to expand their bio-technology facility. However, they are awaiting regulatory approvals.

In 2016, Lupin began selling two oncology bio-similars. Sharma said, “Though the initial sales of bio-similars have been good, it will take at least another two quarters to assess how well it picks up”. He added that Lupin is expanding its biosimilars base.

Lupin , at present, has 149 ANDAs (abbreviated new drug applications) pending for approval with the US health regulator. Lupin’s API (active pharmaceutical ingredients) sales have dropped by over 12.4%.