Lupin Ltd, the Rs 1,150-crore plus pharma giant, suffered heavy setback during the third quarter ended December 2004 on account of higher R&D and product promotion expenditure.

Its net profit for the quarter declined by 38.8 per cent to Rs 24.50 crore from Rs 40.04 crore in the corresponding period of last year. Its net sales, however, improved by 9.9 per cent to Rs 279.56 crore from Rs 254.33 crore. Its domestic finished product revenues increased by 15 per cent to Rs 113.90 crore from Rs 99 crore mainly due to robust growth in the CVS and other lifestyle diseases segment. Export sales increased by 8 per cent to Rs 133.20 crore from Rs 122.90 crore. Of these, API exports from the advanced markets increased by 26 per cent to Rs 42 crore from 33.40 crore.

The company filed two ANDA and four DMFs with US FDA during the quarter under review and it also filed one COS with the EDQM.

Dr Kamal Sharma, managing director said, " The company's focus on R&D continues and the company is on track to achieve its target ANDA and DMF filings in the advanced markets. Simultaneously, the company continues to invest in building its branded business in the US."

For the nine months period ended December 2004, the company's net profit before extra ordinary items declined by 47.7 per cent to Rs 62.63 crore from Rs 119.85 crore in the corresponding period of last year. Its net sales increased by 3 per cent to Rs 871.87 crore from Rs 846.39 crore. Its R&D expenditure went up to Rs 54.58 crore from Rs 24.17 crore, which impacted its bottomline.