 "Lupin divests women's health specialty biz in US to Evofem Biosciences")
Lupin on Monday said it has divested the US commercial women's health specialty business to Evofem Biosciences, a biopharmaceutical company based in the US, which focuses exclusively on women’s health, for an undisclosed sum.
This is another move in aligning its US specialty business with a strategic plan to build specialty business in therapeutic areas where we have building blocks of synergy, the company said. These include respiratory and neurological diseases.
Lupin's US Commercial Women’s Health Specialty Business is focused on commercialising Solosec (secnidazole) oral granules. Solosec is an FDA-approved single-dose antimicrobial agent that provides a complete course of therapy for the treatment of bacterial vaginosis (BV) and trichomoniasis, common sexual health infections.
"Under the terms of the deal, Lupin can receive a potential total consideration of up to $ 84 million based on future contingent milestones," the company said.
Lupin stock ended Monday’s trade at Rs 1828.25 apiece, up 1.7 per cent. The announcement came after market hours.
Fabrice Egros, president - Global Corporate Development, Lupin said: “We are pleased to divest our US Commercial Women’s Health Specialty business, including Solosec, to Evofem. This divestment is another step in aligning our US specialty business with our strategic plan to build our specialty business in therapeutic areas where we have building blocks of synergy. These include respiratory and neurological diseases.”
Lupin's US sales grew by 34 per cent in FY24, driven by its improving regulatory track record and traction in the inhalation portfolio.
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ICICI Securities said in a report earlier this month, "Share of inhalation products has risen from 25 per cent of the US sales in FY22 ($185 million) to 40 per cent in FY24 ($326 million) after the launch of the generic Spiriva."
In India, growth had been subdued due to the discontinuation of in-licensed brands (contribution down from 15 per cent in FY23 to 11 per cent in Q4FY24).
"Going ahead, management is targeting 10 per cent year-on-year (Y-o-Y) growth in India in FY25. The launch of generic Sprivia in the US, softer raw materials, and export incentives have helped Lupin improve margins by robust 870 basis points (bps) Y-o-Y to 19 per cent in FY24. The launches and cost curtailments may aid a further expansion in margins in the near term," the brokerage said.
“The acquisition of this commercial business aligns with and advances our mission to improve access to innovative and differentiated options that impact women’s daily lives. Solosec is a commercially attractive, single-dose oral antibiotic that addresses two pervasive sexual health infections. We can now fully leverage our commercial infrastructure, maximize our strong physician relationships, and re-launch an asset with tremendous growth potential,” said Saundra Pelletier, Chief Executive Officer, Evofem.