Companies

Lupin posts loss in Q2, beefs up quality systems

Our Bureau Mumbai | Updated on November 06, 2019 Published on November 06, 2019

Drug maker Lupin reported a consolidated net loss of ₹123.44 crore. File Photo   -  Reuters

On Japan, says constantly evaluating partnerships and alliances

Drugmaker Lupin clocked 10 per cent growth in revenue at ₹4,296 crore for the second quarter ended September 30, even as it posted a consolidated net loss of ₹127 crore for the period.

The company’s financial performance in the quarter was impacted by a couple of one-time events, Lupin top management said. It has agreed to pay $63.5 million (₹450 crore) as settlement in connection with the State of Texas lawsuit (on price fixing) in the US and accordingly a provision of $53.5 million (₹379 core) has been made during the quarter, the company said.

The quarter also included the completion of the divestment of Kyowa CritiCare Co Ltd (KCC). The resultant loss on divestment was ₹167 core, it added.

On whether the company was looking to exit its generics subsidiary in Japan, Lupin Managing Director Nilesh Gupta echoed the company’s statement recently to the stock exchanges, that they constantly evaluated partnerships and alliances.

On the company’s quarterly performance, he said, “The reported performance for the quarter was bolstered by the NCE (new chemical entity) licensing income but impacted by one-off items, adjusted for which, the operational performance was as expected. The US business has now stabilised and will grow based on ramp up of our in-line products and levothyroxine and the launch of our injectables portfolio.”

Markets like India continue to deliver solid growth, he said, adding that the next financial year is now looking very strong with important growth drivers like India, the generics business in the US coupled with important launches like generic Albuterol in US and Fostair and Etanercept in Europe.

Regulatory compliance remains a top organisational priority, he said, outlining the programme being rolled out across the company to strengthen quality compliance across the board. Four of Lupins plants are at varying levels of regulatory action with the United States Food and Drug Administration.

In the quarter under review, Lupin’s India finished drug sales for the second quarter stood at ₹1,341 crore (₹1,203 crore). Lupin’s Japan sales were at JPY 7,788 million (JPY 8,151 million). North America sales stood at ₹1,324 crore (₹1,248 crore).

 

 

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Published on November 06, 2019
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