Lupin, the fourth largest Indian pharma entity with a sales of Rs.9600 crore, has registered all-round performance during the year ended 2012-13 and now moving ahead of its competitors through meaningful investment in research and development, new product launches, entry in to new geographies and new therapies as well as tie-ups. It has created an advanced biotechnology program and expanded Novel Drug Discovery and Development pipeline to grab future opportunities and overcome stiff competition. With 12 manufacturing facilities, including two in Japan, approved by several regulatory authorities, the company is well set to boost its margins.
The Board of Directors of the company has recently approved an increase in the limit of investments by Foreign Institutional Investors (FIIs) to 49 per cent and awaiting approval from RBI and shareholders. As at the end of June 2013, promoters were holding 46.84 per cent equity stake, FIIs 30.67 per cent and general public 10.12 per cent. The company declared equity dividend of 200 per cent and with strong fundamentals, the scrip is likely to be a bonus candidate in near future.
The impressive financial indicators, higher approvals from highly regulated markets, focus on emerging markets and handsome payout of dividends reflected in the scrip movements during the last few months. Lupin scrip of Rs.2 touched to its 52-weeks highest level at Rs.904.95 on Bombay Stock Exchange (BSE) on July 18, 2013 as against its lowest of Rs.540.15 on October 11, 2012. Lupin scrip maintained continues upward march during the last three and half months and moved up strongly by over 42 per cent from its April 1 share price of Rs.631.20. Currently, it is moving around Rs.895. During the same period, BSE Healthcare index of 17 leading pharma companies improved by 17 per cent and moving at 9475.66 points on July 18, 2013. BSE Sensex also moved up by 6 per cent during the last three and half months.
The worldwide pharmaceutical sector become increasingly volatile and challenging due to pressures created by drying research pipeline. Further, stringent approval systems, legal and quality problems, higher product marketing costs and cost cutting measures put pressure on margins of pharma companies. However, Lupin has successfully overcome several odds and pushed its growth rates. Its consolidated net sales increased smartly by over 36 per cent to Rs.9,641 crore during the year ended March 2013 from Rs.7,083 crore in the previous year. Its formulation sales in US and Europe contributed 42 per cent of total sales and increased by 47 per cent to Rs.4,005 crore from Rs.2,728 crore. Its European sales also went up by 19 per cent.
The consolidated net profit has taken a quantum jump of 51.4 per cent to Rs.1,314 crore during 2012-13 from Rs.868 crore in the previous year. And its EBDITA went up by 57.6 per cent to Rs.2,298 crore from Rs.1,458 crore. As against the equity capital of Rs.90 crore, its reserves and surplus stood at strong level at Rs.5,115 crore, an increase of by 30.4 per cent from previous year. The company has reduced its total borrowings by over 34 per cent to Rs.974 crore from Rs.1,480 crore. With impressive growth in profits, its earnings per share moved up to Rs.29.39 from Rs.19.43.
The R&D expenditure worked out to 7.5 per cent of its net sales during 2012-13 at Rs.710 crore and build up a strong product pipeline. Its R&D Centre is located at Lupin Research Park in Pune with scientists strength of 1,400 persons. Its biotechnology group received its first marketing authorization for an oncology product. It received milestones payment of US$ 6.5 million for two products being jointly developed with Medicis Pharmaceutical Corporation. Its Bioresearch Centre at Pune is conducting bioequivalence studies for its generic products and branded formulations. The centre has completed 19 full studies, taking the cumulative tally to 83 full studies. It filed 157 new patents, taking the cumulative total to 1,181 patents.
Lupin's US subsidiary Lupin Pharmaceuticals Inc. (LPI) has registered US sales of Rs.3,683 crore from Rs.2,393 crore and its brands business contributed 21 per cent of total US sales whereas the generics business contributed 79 per cent during 2012-13. The cumulative ANDA filings reached at 176 approvals despite it removed 16 ANDAs after re-evaluating their business potential. It has launched total 46 generic products in the US market.
Lupin filed 21 ANDAs during 2012-13 in US and received approval for 14 ANDAs from US FDA. It has a pipeline of 116 products. Of these, 29 ANDAs are first-to-file opportunities. Its generic business surpassed US$ 500 million mark for the first time during 2012-13 with new launches contributed around 42 per cent to US generic revenue. The company launched Ziprasidone and the generic for Tricor. It also launched four oral contraceptive products and received approval for seven more products in US.
The company's European sales of finished dosage touched to Rs.236 crore from Rs.197 crore in the previous year. It launched new products like tramadol plus paracetamol tablets, perindopril plus indapamide tablets and ketoprofen tablets in the EU market through partnership. The company filed 10 marketing authorisation applications and received approval for 10 applications. It launched 10 new products in Europe and its cumulative filings stood at 53 with total 38 approvals.
The company's Indian formulation sales increased by 23 per cent to Rs.2,384 crore as compared to Rs.1,937 crore in the previous year and this contributed almost 25 per cent of its total consolidated net sales during 2012-13. The company has presence in cardiology, central nervous system, diabetology, anti-asthma, gynaecology, anti-infective, gastro intestinal and oncology. So far the company launched 37 in-licensed products of which eight were the first to be introduced in India. It launched four in-licensed product during 2012-13. Lupin has a market share of almost 45 per cent in respect of anti-tuberculosis segment and increased by 5.3 per cent in India. Its diabetes care division registered 25 per cent growth with its largest brand Gluconorm.
The sales in the Rest of the World increased by 45 per cent to Rs.2,142 crore in 2012-13 and contributed around 23 per cent to its total consolidated net sales. It filed 16 new products during the year and its cumulative filings in ROW stood at 690 products. Its sales in Japan increased by 39 per cent to Japanese Yen 19.8 billion and has created strong presence in the neurology, cardiovascular, gastroenterology, respiratory and injectables segments. The company is planning to launch 15 new products and file 10 DMFs in Japan in the next two years. Its two Japanese subsidiaries viz, Kyowa and I'rom Pharmaceuticals improved and expended their business in Japan.
The company launched 10 new product in South Africa and its subsidiary Pharma Dynamics registered a strong growth of 26 per cent to Rs.321 crore during 2012-13. Its 50 products are under registration in various African markets. Similarly its Australian subsidiary Generic Health Pty Ltd clocked strong growth of 106 per cent and its revenues touched to Rs.138 crore. Its Philippines based subsidiary Multicare Pharmaceuticals registered sales o Rs.86 crore with a growth of 30 per cent. The company entered Taiwan market during 2012-13 and plans to enter in a big way in Latin American markets.
Its APIs business reached at Rs.950 crore during 2012-13 and it remained the global leader in the therapeutic segments such as cephalosporins, CVS and the anti-TB space. It has maintained its position in anti-TB segment with products like Rifampicin, Pyrazinamide and Ethambutol.
The company has settled seven pending litigations with various global pharmaceutical companies during 2012-13 and wins three patent cases against Bayer and Teva.
Lupin : Consolidated Financial Highlights