 "An employee of Lupin Limited works at a reception at their headquarters in Mumbai")
Drug maker Lupin posted a record 47.5 per cent growth in the March quarter (Q4) of FY16, driven by strong sales growth in the United States market. Net profit was Rs 807 crore, as against Rs 547 crore in same quarter in the last financial year.
The US market sales in the first three quarters of the year were subdued because of competitive pressure. But, the segment showed a sharp 58 per cent upswing in Q4 on a year-on-year basis because of product launches and price hikes in key products.
As a result, total revenue grew 34 per cent to Rs 4,091 crore y-o-y, which is the highest ever recorded by the company. The US business contributes to about half of the company’s revenue.
In the quarter, Lupin gained from the launch of the generic version of anti-diabetes drug (Glumetza), in which it has 180-day sale exclusivity.
Though largely a one-off gain, the company expects the product to contribute significantly to sales next year too. Also, revenue growth was aided by a price rise in the anti-diabetes drug (Fortamet).
Revenue was up in all segments except the South Africa market and Active Pharmaceutical Ingredients. Earnings before interest, tax, depreciation, and ammortisation rose 72 per cent to Rs 1392 crore.
The company’s result beat the Bloomberg estimate on both revenue and net profit parameters.
“We have had a stellar quarter, driven by robust growth across all key markets. Record approvals and significant launches have enabled us to deliver the best results yet and we are back on the growth path. We continue to ramp up our investments in research and are focused on building a pipeline in niche high-value areas such as inhalation, biosimilars and complex injectables,” said Nilesh Gupta, managing director.
