Lupin's Q4 disappoints on soft India sales, higher tax and interest costs

Analysts remain neutral on the stock given limited growth visibility in US, regulatory and lawsuit overhangs

Lupin’s lower than expected March 2019 quarter (Q4) performance further impacted the already weak sentiment, with the stock shedding 3.2 per cent on Wednesday. Moreover, the Street also remains watchful towards Indian pharma companies facing a lawsuit for alleged collusion and inflating drug prices in the world’s largest pharma market, the USA.

Weak India sales weigh on Q4

It was heartening to see Lupin’s North America sales (40 per cent of revenue) grow 16.1 per cent year-on-year and 22.8 per cent sequentially in Q4, led by contribution from a product launched on exclusivity in the US. However, slower than expected