Lupin: Gradual recovery ahead after a weak Q1 show

Higher-than-expected price erosion in US weighs; sequential improvement in margins bright spot

It was expected that Lupin's US sales for the June quarter would be a disappointment. The company did not meet even the low expectations. Its North American sales (42 per cent of revenue) declined 26.8 per cent year-on-year (y-o-y). Analysts at Motilal Oswal Securities had anticipated the US business to decline 18 per cent over a year due to competition to its generic equivalent of diabetes drugs Glumetza and Fortamet. It's not only a y-o-y decline on a high base but a sequential decline of 15.8 per cent, indicating a continuing trend of sharp price erosion. The performance comes despite