The shares of the leading Active Pharmaceutical Ingredients (APIs) manufacturers gained 2.4 percent after the company announced the launch of the first generic version of Oracea capsules in the United States.
With a market capitalization of Rs 73,844.61 crore, the shares of Lupin Ltd were trading at Rs 1,620.20 per share, increasing around 0.76 percent as compared to the previous closing price of Rs 1,605.05 apiece.
According to the company filing, Lupin Ltd has announced the launch of the first generic version of Oracea (Doxycycline Capsules, 40 mg), in the United States, after having received approval from the U.S. FDA.
Furthermore, Doxycycline Capsules, 40 mg is indicated for the treatment of only inflammatory lesions (papules and pustules) of rosacea in adult patients. Doxycycline Capsules had estimated annual sales of USD 128 million in the U.S.
Nomura, one of the well-known brokerages in Japan, gave a ‘Buy’ call on the pharma stock with a target price of Rs 1,949, indicating a potential upside of 20 percent from Wednesday’s price of Rs 1,619.00 per share.
According to the brokerage, Lupin’s ANDA is the only one now found non-infringing by the court, which might allow it to be the sole permitted generic until December 2027, when the ‘532 patent expires. According to Nomura, Lupin might achieve $10-15 million in yearly sales if it stays the sole certified generic, representing a potential profits upside of $6-9 million (2-3 percent of FY25 earnings), subject to competition dynamics being clarified.
Looking into Lupin Ltd’s financials, the revenue increased by 20 percent, from Rs 4,322 crore in Q3 FY23 to Rs 5,197 crore in Q3 FY24. During the same period, net profit increased by 291 percent, from Rs 158 crore to Rs 619 crore.
The business intends to offer Complex Generics in Regulated Markets by 2028, with 20 product launches in inhalation, injectables, biosimilars, and novel complex products. It also intends to submit three biosimilar files in regulated markets and launch ten innovative complicated pipeline drugs in India.
The firm generates income from all around the world, with India accounting for 37%, the United States for 32%, and the remaining 31% coming from other regions and APIs.
Lupin produces and commercializes a diverse variety of branded and generic formulations, biotechnology products, and APIs in over 100 markets worldwide, including the United States, India, South Africa, Asia Pacific (APAC), Latin America (LATAM), Europe, and the Middle East.
Written by:- Abhishek Singh
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