The Hindu Business Line : Lupin Q4 net profit jumps on US sales

Growth plans
Acquisition continues to remain on Lupin's radar.
Lupin received approval from the USFDA for its anti-infective medicine Cefdinir.

Mumbai May 9 Sales in the US coupled with local sales and research initiatives helped Lupin Ltd's net profit soar by 173 per cent during fourth quarter ended March 31, 2007.

The Mumbai-based drug company posted a net profit of Rs 137.08 crore for the quarter ended March 31, 2007, as compared to Rs 50.19 crore for the corresponding period in 2006. Total income (net of excise) has increased from Rs 463.02 crore to Rs 646.40 crore.

Regulatory Approval

Lupin's Managing Director, Dr Kamal Sharma, told Business Line that sales in the US have stabilised with the sale of generic copies and branded medicines. More products would be introduced by the end of the current financial year.

The company will also step up activity in Europe, with six to eight launches expected by the end of the year, he said. It has got regulatory approval in France to market cefpodoxime proxetil tablets, a cephalosporin antibiotic. The drug is a generic equivalent of Sanofi-Aventis's Orelox tablets and is set to go off patent in August 2007.

The company will work in partnership with other companies in Europe, he indicated. The company has 24 dossiers filed in Europe seeking marketing approvals and 51 in the US. Acquisition continues to remain on Lupin's radar, he admitted, unwilling to divulge details.

Meanwhile, Lupin has received approval from the US Food and Drug Administration for its oral suspension form of anti-infective medicine Cefdinir. The drug is the generic equivalent of Abbott Laboratories' Omnicef, clocking US sales of approximately $787 million for 12 months ended December 31, 2006, according to industry data. Last week, Abbott and Astellas withdrew their motion for preliminary injunction to stop any potential launch by the company.

On the domestic front, Lupin will add two therapeutic segments, central nervous system and oncology, besides expanding its respiratory and COPD segment, he said. With Lupin's migraine and psoriasis products at different stages of development, the company's chief said that three/four pre-clinical leads have been identified in diabetes and rheumatoid arthritis.

Consolidated results

The group posted a net profit after minority interest of Rs 308.56 crore for the year ended March 31, 2007 compared with Rs 172.99 crore for the year ended March 31, 2006. Total income (net of excise) has increased from Rs 1,769.50 crore to Rs 2,212.76 crore.

Lupin's board of directors also recommended dividend at 50 per cent or Rs 5 per equity share of face value Rs 10 each, for the year ended March 31, 2007.

Lupin's board also approved the formation of a wholly owned subsidiary in Switzerland, with an initial investment of up to Swiss Francs 1,00,000 ($83,000). The subsidiary would act as a special purpose vehicle for routing overseas investments to be made by the company. The company's shares were down 1.79 per cent on the BSE at Rs 709.05.