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Lupin has announced the launch of Aciphex (generic version) delayed-release tablet 20 mg in the US market. The Eisai Inc’s brand Aciphex containing Rabeprazole, a drug used for treatment of gastric disorders, had clocked in $864 million in July 2012 – June 2013, as per IMS data.
However, other players have also launched the generic version of the drug and as per Sarabjit Kaur Nangra, an analyst at Angel Broking, it is a six – seven player market now. For Lupin, the drug is likely to contribute $15 million per annum to company’s US revenues on conservative basis.
The launch of this product is likely to strengthen Lupin’s US portfolio that contributes 32% to its overall revenues - growing 16% in dollar terms and 32% in rupee terms to Rs 10,349 crore during the September 2013 quarter. However, the growth in December 2013 quarter is likely to be given the high base of the previous corresponding period.
Post today’s launch, Lupin has already launched 11 products in the US market this year and received 15 approvals. Cumulative ANDA filings for the company with the US FDA now stand at 183 with 92 approvals to date.
Growth in Japan that has remained negative till now should gain traction in H2FY14 as contract manufacturing picks up. Lupin has planned a few product launches for the Japanese market going ahead.
In the domestic market, while the June 2013 quarter saw a negative growth, the company has rebounded with 9% growth in the recently concluded quarter. The management expects the domestic growth to come back to 18 – 20% level once the trade related issues in the back of new drug pricing policy get resolved.
While some analysts reiterate their neutral rating on the stock looking at the near-term hiccups, investors with medium-to-long term outlook can look to accumulate the counter. Analysts as Ranjit Kapadia at Centrum broking maintains their ‘buy’ rating with a one year target price of over Rs 1,100.
