Lupin rose 4.03% to Rs 1,414 on BSE after the company said it entered into an agreement with US-based Salix Pharmaceuticals to market the latter's two products in Canada.
The announcement was made at the fag end of the trading session on Friday, 12 September 2014. Shares of Lupin rose 2.93% to Rs 1,359.25 on Friday.
Meanwhile, the BSE Sensex fell 244.48 points, or 0.90%, to 26,816.56.
On BSE, 97,000 shares were traded in the counter, compared with an average volume of 73,137 shares in the past one quarter.
The stock hit an intraday high of Rs 1,422, which is also a record high for the counter. The stock hit an intraday low of Rs 1,352.70. The stock hit a 52-week low of Rs 833.55 on 18 September 2013.
The stock had outperformed the market over the past one month till 12 September 2014, rising 16.84% compared with 4.56% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 37.46% as against Sensex's 5.81% rise.
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The large-cap company has an equity capital of Rs 89.76 crore. Face value per share is Rs 2.
Lupin and Salix Pharmaceuticals, Inc. entered into a definitive distribution agreement under which Salix has granted Lupin the exclusive right to market, distribute and sell certain Salix products in Canada. This includes immediate rights to distribute Zaxine (rifaximin) 550 milligram (mg) tablets (used for reduction in risk of overt hepatic encephalopathy (HE) recurrence in patients 18 years of age or older) and Relistor Subcutaneous Injection (used for the treatment of opioid-induced constipation (OIC) in patients with advanced illness who are receiving palliative care, when response to laxative therapy has not been sufficient).
Additionally, the agreement includes future dosage forms, strengths, and indications for such products. Under the agreement, Lupin also has the option to exclusively market, distribute and sell other gastroenterology products in Salix's Canadian pipeline once approved by Health Canada.
Lupin will promote the Salix products through its own sales force in Canada. Lupin is in the process of establishing its Canadian presence and the addition of this significant product portfolio opens up growth opportunities for the future. Zaxine and Relistor are first-in-class treatments for their respective disorders and are important treatment options for physicians and their patients, not only in the US, but now in Canada.
Under the terms of the agreement, Salix will receive an upfront payment and distribution fees, and is eligible for additional pre-commercial and sales milestone payments. Salix will supply the products to Lupin under separate supply agreements.
On a consolidated basis, Lupin's net profit grew by 55.8% to Rs 624.70 crore on 35.7% rise in net sales to Rs 3284 crore in Q1 June 2014 over Q1 June 2013.
Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations and APIs. The company is a significant player in the cardiovascular, diabetology, asthma, pediatric, CNS, GI, anti-infective and NSAID space and holds global leadership positions in the anti-TB and cephalosporin segment. Lupin is the 5th largest and fastest growing top 5 generics player in the US (5.3% market share by prescriptions, IMS Health) and the third largest Indian pharmaceutical company by sales. The company is also the fastest growing top 10 generic pharmaceutical players in Japan and South Africa (IMS).
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