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Lupin gains after acquiring Biocom in Russia

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Capital Market
Last Updated : Jul 03 2015 | 11:02 AM IST

Lupin rose 2% to Rs 1,907.10 at 9:35 IST on BSE after the company announced the acquisition of 100% equity stake in ZAO Biocom in Russia.

The company made announcement after market hours yesterday, 2 July 2015.

Meanwhile, the BSE Sensex was up 93.70 points, or 0.34%, to 28,039.50.

On BSE, so far 10,120 shares were traded in the counter, compared with an average volume of 1.08 lakh shares in the past one quarter.

The stock hit a high of Rs 1,913.70 and low of Rs 1,894 so far during the day. The stock hit a record high of Rs 2,112 on 8 April 2015. The stock hit a 52-week low of Rs 1,012.20 on 10 July 2014.

The stock had outperformed the market over the past one month till 2 July 2015, rising 3.94% compared with 2.79% rise in the Sensex. The scrip had however underperformed the market in past one quarter, sliding 8.27% as against Sensex's 1.11% decline.

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The large-cap pharmaceuticals company has an equity capital of Rs 89.98 crore. Face value per share is Rs 2.

Lupin announced the acquisition of 100% equity stake in ZAO Biocom in Russia subject to certain closing conditions. The acquisition marks Lupin's foray into the Russian pharmaceutical market which recorded RUB 765 billion in sales, placing it as one of the top 10 pharmaceutical markets in the world in 2014 (IMS Health).

Established in 1991, Biocom is a fast growing generic pharmaceutical company with a major focus on therapies such as cardiovascular, central nervous system and antimicrobials for systemic use and also does contract manufacturing and secondary packaging. The company recorded sales of RUB 861.2 million in financial year 2014 and has 118 employees. Biocom operates a modern European GMP compliant plant and was also one of the first Russian pharmaceutical manufacturing companies to receive an approved manufacturer status from the World Health Organization (WHO) in 2013.

Commenting on the acquisition, Vinita Gupta, Chief Executive Officer of Lupin said that Russia is an attractive market and this acquisition will also enable the company's expansion into neighboring markets as well as other Eastern European markets in the future.

On consolidated basis, Lupin's net profit fell 1.1% to Rs 547.01 crore on 1% decline in total income to Rs 3095.35 crore in Q4 March 2015 over Q4 March 2014.

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First Published: Jul 03 2015 | 9:23 AM IST

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