Lupin rose 0.77% to Rs 1,556.95 at 9:22 IST on BSE after the company said its US subsidiary has received final approval from US drug regulator to market a generic equivalent of Upsher-Smith Labs' Klor-Con Extended-Release Tablets, 8 mEq and 10 mEq.
The announcement was made after market hours yesterday, 10 August 2016.Meanwhile, the S&P BSE Sensex was down 55.33 points or 0.2% at 27,719.55.
On BSE, so far 17,000 shares were traded in the counter as against average daily volume of 1.40 lakh shares in the past one quarter. The stock hit a high of Rs 1,567.60 and a low of Rs 1,551 so far during the day. The stock had hit a record high of Rs 2,127 on 6 October 2015. The stock had hit a 52-week low of Rs 1,294.05 on 29 March 2016. The stock had underperformed the market over the past one month till 10 August 2016, sliding 5.63% compared with 2.39% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 4.31% as against Sensex's 7.77% rise.
The large-cap company has equity capital of Rs 90.20 crore. Face value per share is Rs 2.
Lupin announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received final approval for its Potassium Chloride Extended-Release Tablets USP, 8 mEq (600 mg) and 10 mEq (750 mg) from the United States Food and Drug Administration (USFDA). The drug is a generic equivalent of Upsher-Smith Labs' Klor-Con Extended-Release Tablets, 8 mEq and 10 mEq. It is an electrolyte replenisher indicated for the therapeutic use of patients with hypokalemia, with or without metabolic alkalosis; in digitalis intoxication; and in patients with hypokalemic familial periodic paralysis. Klor-Con Extended-Release Tablets, 8 mEq and 10 mEq had annual US sales of $101.3 million as per IMS MAT June 2016 data.
Shares of Lupin had tanked 8.72% in the preceding two trading sessions to settle at Rs 1,545.05 yesterday, 10 August 2016 from its close of Rs 1,692.75 on 8 August 2016, after the company's announcement of Q1 June 2016 results during trading hours on 9 August 2016. Lupin's consolidated net profit rose 55.1% to Rs 882 crore on 40% growth in net sales to Rs 4313.60 crore in Q1 June 2016 over Q1 June 2015.
A foreign brokerage has reportedly downgraded shares of the Indian drug maker to sell after the announcement of the first quarter results. The brokerage reportedly said that the competition in top US products will weigh on the company's growth. Lupin's key complex products lack visibility of launch. Lupin is likely to post single digit earnings per share growth in the year ending March 2018, it added. Meanwhile, another foreign brokerage reportedly maintained underperform rating on Lupin. It reportedly said that risk-reward ratio is unfavourable for the stock. Q1 has been a peak profit quarter for Lupin. The brokerage cut its estimates on Lupin's earnings per share for the year ending March 2017 (FY 2017).
Lupin is a pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally. The company is a significant player in the cardiovascular, diabetology, asthma, pediatric, CNS, GI, anti-infective and NSAID space and holds global leadership positions in the anti-TB segment.
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