The Hindu Business Line : Lupin steps up pace in Europe

AFTER having set the ball rolling in the US about three years ago, Mumbai-based drug maker Lupin Ltd is set to step up the pace in the European markets.

Advanced markets, comprising North America and Europe, posted a 139 per cent growth in revenues at Rs 102 crore for the three-months ended December 31, 2005.

Last year was an inflection point for the company, where it doubled its investment on research. This is paying off, Lupin's Managing Director, Dr Kamal K. Sharma, told Business Line.

Five new products have been launched in the US till December, he said outlining Lupin's plans to grow in the branded generics segment. Five new Abbreviated New Drug Applications, also in the US, have been filed, he said.

The pace is being accelerated in Europe, with six marketing approval authorisations in the pipeline. It will take at least 12 months to get approved, he said. Once these approvals have been received, Lupin's products will have an easier access to other European markets due to mutual recognition. The company has also filed nine drug master files in Europe, besides three in the US.

Research and development is in full throttle and performance will take off from there, he said. Last year, the company had doubled its research spend from three per cent to seven per cent of revenues. Lupin was sticking to its plan of stabilising in the US, before looking at Europe, Australia, Japan and South Africa. And having raised $100 million to fund acquisitions overseas, Dr Sharma said the search was on in the US and Europe for the right "business fit". Lupin has also filed two product dossiers in Australia.

Jammu plant: Lupin is setting up a formulations plant in Jammu to make finished dosage forms of medicines. At Rs 26 crore, the plant would support increased demand from developing markets.

Q3 net soars 80%: Lupin posted an 80 per cent growth in net profit at Rs 44.2 crore for the third quarter ended December 31, 2005 compared with Rs 24.5 crore for the quarter ended December 31, 2004. Total income (net of excise) has increased 49 per cent to Rs 436.51 crore (Rs 292.26 crore). Export revenues increased by 56 per cent, supported by new products and regular offtake of existing products to stave off pricing pressures in the US.

Lupin shares closed at Rs 823.65, up 4.98 per cent on the Bombay Stock Exchange.