The shares of a prominent pharma company gained up to 3 percent after the company announced plans to launch gTolvaptan (the generic version of Jynarque) in the US, which will generate a revenue opportunity of up to $150–200 million.
Price Movement
With a market capitalization of Rs 95,371.87 crore, the shares of Lupin Ltd closed at Rs 2,088.90 per share, increased around 2.05 percent as compared to the previous closing price of Rs 2046.90 apiece.
Reason for Rise
The shares of Lupin Ltd have seen positive movement after announcing plans to launch gTolvaptan (the generic version of Jynarque) in the US, which will generate a revenue opportunity of up to $150–200 million. gTolvaptan could contribute over 25 percent to Lupin’s FY26 earnings, making it a key growth driver for the year.
Financial Growth
Looking forward to the company’s financial performance, revenue increased by 11 percent from Rs 5,197 crore in Q3FY24 to Rs 5,768 crore in Q3FY25, Moreover, during the same time frame, net profit increased by 39 percent from Rs 619 crore to Rs 859 crore.
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Market Challenges and Outlook
Respiratory therapy growth has lagged due to a market shift towards anti-infectives, but management remains optimistic about a rebound in the coming quarters. They are also closely monitoring proposed pharmaceutical tariffs, expressing hope for exemptions to safeguard the generic drug sector and support future market stability and growth.
Capital Allocation and M&A Strategy
The company prioritizes capital allocation towards its India and specialty businesses, followed by select generics. It remains open to strategic acquisitions, targeting bite-sized deals in the range of USD 200–250 million. Additionally, the company is actively exploring opportunities in the CDMO (Contract Development and Manufacturing Organization) space to drive long-term growth beyond FY27.
Company Profile
Lupin develops and commercializes a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.
Written by Abhishek Singh
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