A strong show across different geographies has helped Lupin beat market expectations in the second quarter. The company reported a 24 per cent year-on-year growth in both consolidated revenues and profits, in spite of an overall surge in costs.
Increased overheads due to the new facility at Indore, higher costs of fuel and solvents added to cost pressure, but Lupin managed to keep its margins steady. This was also helped by the $20 million upfront payment from the licensing agreement with Medicis Pharmaceutical Corporation. But for this, the operating margins remained flat at 21 per cent.
US continues to grow
Lupin's formulation sales in the US and Europe grew by about 16 per cent during the quarter (34 per cent of total revenues). Steady business led by Suprax (tablet grew 52 per cent in revenue and 27 per cent in prescription) helped the branded business chart a 19 per cent growth; generics business grew by about 14 per cent.
The quarter also saw the launch of Metformin ER Tablets, for which Lupin was the first applicant to file an ANDA (entitled to 180 days of marketing exclusivity).
During the quarter the company filed one ANDA bringing the cumulative filings to 153 ANDAs. The company received 3 ANDA approvals in the quarter (six in all in the half year).
Domestic stronghold remains
Its stronghold in the domestic market continued with India formulations growing by about 22 per cent during the quarter (29 per cent of total revenues; industry average 14 per cent). As for other regions, while Japan reported a 14 per cent growth, its South African subsidiary, Pharma Dynamics, grew by 61 per cent.