 "On lookout for companies, products to acquire: Vinita Gupta")
Lupin, India’s third-largest pharmaceuticals company by market capitalisation, has appointed Vinita Gupta, daughter of chairman D B Gupta, as CEO, with effect from September 1. As the chief executive of Lupin Pharmaceuticals, the company’s US subsidiary, Gupta, 45, played a key role in changing Lupin. She speaks to Reghu Balakrishnan on her new role and the plans under her leadership. Excerpts:
What are your priorities after taking over the reins of Lupin?
Well, it is too early to comment on the changes that have just been announced, as it comes into effect from September. The priorities would very much remain the same in terms of making sure that we continue the growth momentum of the past seven years, as well as focus on how we can do it better across key markets. Even though I was heading the US and European business so far, I have been fairly keyed into the overall strategy and direction the company has taken globally and within important markets like India or Japan.
How will you increase the US revenue? What are your plans on Abbreviated New Drug Application (Anda) filings?
What are your areas of interest in the US market?
If you look at the evolution of our US pipeline, specifically over the last four years, one would see that we have been focusing on less competitive specialties spaces, for example, segments like oral contraceptives (OC), ophthalmology, and dermatology. A less competed for space, $4-5 billion OC market is a very niche area and requires a high level of R&D expertise, API (active pharmaceutical ingredient) strengths and manufacturing competencies. Lupin’s current Anda filings for OCs stand at 32, which we believe are the largest and most qualitative pipeline for the market. Lupin has already done 10-12 filings with the FDA for ophthalmological products.
How do you plan to tap the local market?
India revenue grew nicely as well at 24 per cent, while the industry grew 10-11 per cent. The company’s product and therapy segment mix for the Indian pharmaceutical market has evolved over the past four to five years and we would continue to look at making deeper inroads into high growth therapies like cardiology, central nervous system, diabetology, anti-asthma and gynaecology.
What would be the mergers and acquisitions strategy under your leadership?
Acquisitions would be a part of our overall business approach and we are on the lookout for companies and products to acquire. Our acquisition strategy is going to be three-fold — adding products and companies that can complement our existing businesses in major markets like the US and Japan; acquiring companies that can expand our capabilities from a technology standpoint; and, expanding our geographic presence.
What are the market-wise expansion plans?
In the US, in particular, we are looking at brands we can buy that can add to our portfolio. Likewise in Japan, we are looking at companies that can add to our market presence in the country. Though we have good geographic spread right now of 60 per cent in regulated markets and 40 per cent in emerging markets, we have aspirations to go into other markets where we think we can add and build value in and we are very actively looking at acquisitions in these countries — some markets in Europe, LATAM (Latin America), India, and China.
How is the Japanese market doing?
Lupin’s Japanese business grew by 52 per cent, clocking net sales of Rs 1,304 crore and contributed 14 per cent to the company’s consolidated revenues. We had multiple new product launches in Kyowa that contributed to growth in Japan.
What are your priorities after taking over the reins of Lupin?
Well, it is too early to comment on the changes that have just been announced, as it comes into effect from September. The priorities would very much remain the same in terms of making sure that we continue the growth momentum of the past seven years, as well as focus on how we can do it better across key markets. Even though I was heading the US and European business so far, I have been fairly keyed into the overall strategy and direction the company has taken globally and within important markets like India or Japan.
How will you increase the US revenue? What are your plans on Abbreviated New Drug Application (Anda) filings?
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The US business grew 37 per cent last year. The growth was driven primarily by the generic business, which grew to $550 million or 52 per cent on the back of new product launches during the year. US and Europe formulation sales (including intellectual property) grew by 47 per cent to Rs 4,005 crore, contributing 42 per cent to overall sales. We have built one of the largest quality pipelines for the US generics market. During the year, we have filed 21 Anda’s and received 14 approvals. Cumulative Anda filings with the US FDA as of March 31 stood at 176 with the company having received 78 approvals to date. So, a large part of our pipelines is yet to come into play. We have 26 first to file opportunities, out of which 12 are exclusive opportunities and most of which are yet to be launched. We have multiple products where we have semi-exclusivity and limited competition that should help us grow our business. In the US, we should have 15-20 product launches, subject to FDA approval in the next fiscal year in the US.
What are your areas of interest in the US market?
If you look at the evolution of our US pipeline, specifically over the last four years, one would see that we have been focusing on less competitive specialties spaces, for example, segments like oral contraceptives (OC), ophthalmology, and dermatology. A less competed for space, $4-5 billion OC market is a very niche area and requires a high level of R&D expertise, API (active pharmaceutical ingredient) strengths and manufacturing competencies. Lupin’s current Anda filings for OCs stand at 32, which we believe are the largest and most qualitative pipeline for the market. Lupin has already done 10-12 filings with the FDA for ophthalmological products.
How do you plan to tap the local market?
India revenue grew nicely as well at 24 per cent, while the industry grew 10-11 per cent. The company’s product and therapy segment mix for the Indian pharmaceutical market has evolved over the past four to five years and we would continue to look at making deeper inroads into high growth therapies like cardiology, central nervous system, diabetology, anti-asthma and gynaecology.
What would be the mergers and acquisitions strategy under your leadership?
Acquisitions would be a part of our overall business approach and we are on the lookout for companies and products to acquire. Our acquisition strategy is going to be three-fold — adding products and companies that can complement our existing businesses in major markets like the US and Japan; acquiring companies that can expand our capabilities from a technology standpoint; and, expanding our geographic presence.
What are the market-wise expansion plans?
In the US, in particular, we are looking at brands we can buy that can add to our portfolio. Likewise in Japan, we are looking at companies that can add to our market presence in the country. Though we have good geographic spread right now of 60 per cent in regulated markets and 40 per cent in emerging markets, we have aspirations to go into other markets where we think we can add and build value in and we are very actively looking at acquisitions in these countries — some markets in Europe, LATAM (Latin America), India, and China.
How is the Japanese market doing?
Lupin’s Japanese business grew by 52 per cent, clocking net sales of Rs 1,304 crore and contributed 14 per cent to the company’s consolidated revenues. We had multiple new product launches in Kyowa that contributed to growth in Japan.