Lupin: Price erosion still a key concern

Recent acquisition & large product pipeline long-term growth drivers; price erosion in US to weigh on earnings

Drug major Lupin, which has been reeling under intense pricing pressure for its key products in the US, is trying to chart a growth path.

Its recently announced acquisition in the US is a step in that direction. The buy will give the company access to the brand Solosec in the women’s health care segment, besides existing products such as Methergin and a few oral contraceptives (many more products are lined up for approval).

The acquisition of a brand has its own benefits such as better margins and is also a long-term growth driver compared to generics that tend to face competition