Cephalosporins and cardiovasculars will be thrust areas for Lupin in the field of exports, which would catapult the company's share of exports to 50 per cent out of its total sales by 2005, said Dr. Desh Bandhu Gupta, Chairman, Lupin.
Currently exports contribute to 41 per cent of Lupin's total sales. The current global market for cephalosporins is $ 100 million. The company recently received two US FDA approvals for ceftriaxone and cefotaxime. "We are going to invest Rs. 200 crores in the area of Cephalosporin. In the CVS segment, we are coming up with four prils (new generation ACE inhibitors) and four statins," he added.
Lupin achieved a turnover of Rs 1,120 crore and PBT of Rs. 97 crore for the year ended March 2003. Along with formulations, Lupin will continue its thrust on the API front. The company has got dedicated API markets in 50 countries around the world including China and Japan.
A major chunk (31 per cent) out of Lupin's total exports comes from the advanced markets of Europe and US. APIs contribute to one-third of total exports, the rest is from formulations.
Nine out of Lupin's 10 plants have US FDA approval. "By 2005, exports would contribute to 50 per cent of Lupin's overall sales and by 2008, it should be 70 per cent," said Dr. Gupta.
The current global market for off-patent drugs is $ 40 billion and in the next five years $ 50 billion worth blockbuster drugs are going to become off-patent, he added.
Lupin will be launching eight herbal products in the therapeutic categories like gynaecology, pain, anti-inflammatory, paediatric and diabetic segments by February next year. Its ultimate plan is to export these products into advanced markets, especially Germany and France, which comprise of 40 per cent of the world market for herbal products.
NCEs and NDDS research are other lucrative avenues looked at by the company. It will begin clinical trials of its new NCE for migraine. It is optimistic on a new molecule for psoriasis and TB. The company is working on Advanced Drug Delivery Systems (ADDSs) on generics (ANDA's), and new platforms for Oral Controlled Release Systems (OCRS's) on formulations to improve compliance. Likewise it has filed 110 patents filed to date of which 50 have been granted. The company has filed 21 DMFs in FY 2003 with a majority in the advanced markets of Europe and US.
Although margins from TB business are on the decline, Lupin will continue with its manufacturing and research on new molecules. The company already has a dedicated facility at Pune for conducting anti-TB research. Lupin is the world's largest manufacturer of Ethambutol with about 84 per cent of the global market share. It is also one of the leading producers of Rifampicin in the world. The world TB market (institutional sales + private trading) is worth $ 800 million. "Availability of funds was a major concern initially. Now with reputed international Trusts like Bill & Melinda Gates, and Rockefeller Foundations generously donating money for research, the situation is improving," he said. The company as of now has no plans on reducing its TB related manufacturing or research, he stressed.
Lupin with over 3,300 employees is spread over six locations in India and a location in Thailand. The company has established its sales offices in UK, USA, Hong Kong, Japan and CIS.