Long-term investment in manpower, research and the translation of currency has had a three-per cent-odd impact on drug-maker Lupin's performance, said the Managing Director, Dr Kamal K. Sharma.

The company, nevertheless, clocked a 39 per cent increase in net profit for the three months ended December 31, 2010.

About 900 people have been added over the last six-odd months in Lupin's Special Economic Zone in Indore and a new in-house clinical research organisation at Pune, besides additional field-force in India and the US, Dr Sharma told Business Line.

Research spend up

The company's research spend was up at eight per cent, as compared to its own bench-mark of 7.5 per cent; there has been a 1.3 per cent increase in investment in new segments such as asthma and opthalmology, besides bio-similar products.

And there has been a 1.2 per cent, one-time impact of about Rs 17 crore, due to translation of currency (between the Swiss franc and the rupee), he said.

Shelved

The company has restructured its research pipeline, with a focus on bio-similar products, besides life-style products. With its energies and investments focused on the new segments, the earlier migraine and psoriasis products in the pipeline have been shelved for the time-being, he admitted.

They are good products, he said, but with less potential in terms of markets, he added.

While the company is optimistic about growth in the domestic market, Dr Sharma said, the look-out for good buys in emerging markets was a constant strategy, if it helped the business.

Eyeing second buy

Lupin is looking for a second buy in Japan too, where it already has a presence through an earlier acquisition.

The buy would be to fill gaps in its product portfolio, he said.

Lupin shares closed down five per cent on BSE, at Rs 442 on Thursday.

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