The Hindu Business Line : Fundamentals attract investors into Lupin

THE Lupin Ltd stock on Wednesday moved ahead on the major bourses on reported buying an existing investor. According to dealers, Mr Rakesh Jhunjhunwala is understood to be accumulating the stock again. As on March 31, 2004, Mr Jhunjhunwala and his family held 4.13 per cent stake .

The counter gained by around 6.65 per cent with substantial increase in volumes. However, according to analysts, there have also been fundamental triggers for the stock to attract revaluation.

Mr Kashyap Mehta commented that among the second- rung pharmaceuticals, Lupin was well-placed to grab the opportunities in the US generics market. Though a late entrant, it has taken up an aggressive stance vis-à-vis its foray into the biggest drug market. It is also keen to join the off-patent drug bandwagon.

Its US plans would be aided by the launch of an anti-infective oral suspension, exclusive distribution deal with Baxter Healthcare Corporation of US for its generic version of ceftriaxone sterile injection vials , and a promotional and marketing arrangement by Lupin Pharmaceuticals Inc, its wholly-owned US subsidiary, with Allergan Inc for a pediatric anti-bacterial ophthalmic solution in the US. In the domestic market, it has expanded into the herbal products in the areas of diabetics, pediatrics, pain management and gynaecology. It is also setting up a Rs 20-crore plant in Aurangabad for anti-TB products. It aims to capture 5 per cent of the $10 billion global anti-TB product market.

Mr Mehta pointed out that USFDA has accepted herbal products, which would open the ethical and OTC routes for such products post-2005. "Among the Indian companies, Lupin has the largest number of plants approved by USFDA and UKMCA", he said.

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