Synopsis:
Lupin Limited has entered a $50 million licensing and supply agreement with Zentiva to commercialize its biosimilar Certolizumab Pegol across global markets. While Zentiva will lead sales in Europe and CIS, Lupin will manage development and supply.
One of India’s most trusted pharmaceutical names has just taken a major step to deepen its international presence. At a time when biosimilars are gaining global momentum, this Mumbai headquartered drugmaker has inked a high-potential deal that could boost its long-term revenue and presence across key global markets.
The company in focus is Lupin Limited, with a market capitalization of Rs. 88,071 crore. The stock opened today at Rs. 1,933.40, slightly above its previous close of Rs. 1,922.10, and touched an intraday high of Rs. 1,965.50, reflecting a 2.26 percent gain, following the announcement of this strategic partnership.
What’s the news?
Lupin has entered into a License and Supply Agreement with Zentiva, k.s., for the commercialization of its biosimilar Certolizumab Pegol, a drug used to treat autoimmune conditions such as rheumatoid arthritis and Crohn’s disease. Zentiva is a leading pharmaceutical group with reach across 30+ countries across Europe and 100 million patients.
The agreement covers multiple international markets (excluding Australia, Japan, Brazil, the Philippines, and India). Lupin will handle the development, manufacturing, and supply, while Zentiva will take charge of commercialization in Europe and CIS regions, using its strong regulatory and market infrastructure. Lupin will also directly commercialize the biosimilar in the USA, Canada, and other remaining regions.
As part of the deal, Zentiva will pay Lupin up to USD 50 million, including an upfront fee of USD 10 million upon execution of the agreement, based on regulatory milestones. The companies will also co-invest in product development, with profit sharing in the defined territories.
Financially, Lupin has delivered a strong financial performance. Sales rose by 13.4 percent from Rs. 20,011 crore in FY24 to Rs. 22,708 crore in FY25, while net profit jumped by 70.8 percent, from Rs. 1,936 crore to Rs. 3,306 crore. The company’s Operating Profit Margin improved from 19 percent to 23 percent, and EPS shot up from Rs. 42.01 to Rs. 71.88 over the same period.
Lupin has also posted a remarkable 55.1 percent profit CAGR over the last five years. Net cash flow turned positive, rising from Rs. –248 crore to Rs. 560 crore, signalling strong improvement in Lupin’s liquidity and cash management
Despite a slight dip in dividend payout ratio from 19% to 17%, return metrics remain strong, with ROCE at 21.5 percent and ROE at 20.8 percent, reinforcing shareholder value creation. They received a credit rating of [ICRA]A1+; reaffirmed from ICRA.
About the company
Founded in Mumbai, Lupin Limited is a global pharmaceutical leader known for its innovation-led drug development, with a diverse portfolio that includes branded formulations, generics, APIs, and biotechnology products. With a presence in over 100 countries, Lupin is a key player in the US, India, South Africa, LATAM, APAC, Europe, and the Middle East, committed to making high-quality, affordable medicines accessible across the globe.
Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
