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P.T. Jyothi Datta

Mumbai , Aug 8

THE Mumbai-based Lupin Ltd has got its overseas strategy charted out. And this includes acquisition plans in the US.

Markets that will see active sales promotion are Australia, West Asia, South Africa and the CIS, Lupin's Chairman, Dr Desh Bandhu Gupta, told Business Line, even as he discussed the company's recent foray into Japan.

Lupin is looking at a brand acquisition or marketing alliance in the paediatrics segment to strengthen its position in the US. This should be in place by early next year, he said.

Lupin recently got an approval from its board for an enabling provision to raise $100 million by selling convertible bonds overseas.

Meanwhile, the company has inked a marketing alliance with Japan's Kyowa Pharmaceutical Industry Co, wherein the two companies will collaborate to market finished dosage forms or formulations in Japan. The agreement covers the cardiovascular segment (CVS), central nervous system (CNS), gastro-intestinal (GI) and anti-infective segments, he said. Lupin will develop the product and manufacture it at its plants in Goa or Mandideep in Madhya Pradesh. Kyowa will take care of the regulatory issues, besides the marketing, he said.

Explaining the significance of the Japanese market, he said, Japan is the second single largest market after the US. Although generic or chemically similar drugs account for only five per cent of this $52-billion market, the drug industry expects that to change.

"Substitution is not yet there, but it will happen soon," he said, indicating that rules in Japan were expected to change in favour of generic drugs. The Japanese Government is actively supporting the use of generics to bring down the cost of medicines in the country, he said. Headquartered in Osaka, Kyowa has a presence in CNS, CVS and GI and it develops, manufactures and markets finished drugs in Japan. The company's sales in 2004-05 were 7 billion yen.

Lupin is in the process of finalising its foray into the CIS. It would tap South Africa through a marketing alliance, he said. The company had recently wound up its subsidiary in South Africa due to financial problems faced by the joint venture partner.

In West Asia, Lupin will form an alliance with Neopharma, he said. The company also recently established a subsidiary in Australia, but expects to enter the market only in another two years, he added.

Exports currently account for about 40 per cent of Lupin's revenues.

On the research front, he said that progress was being made on the new chemical entities in the multi-tuberculosis and psorasis (a skin condition) segments. A couple of herbal products were also under development, including a product for migraine and psorasis.

Dr Gupta indicated that Lupin would probably look at licensing these molecules, once a certain development-milestone has been achieved.

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