Lupin’s splendid show continued in the September quarter with profits rising almost 40 per cent helped by a good show by the US generics business.
Higher contribution from in-house products, inventory gains in Japan and rupee depreciation against US dollar helped Lupin improve operating margins by 2.3 percentage points to 24.7 per cent.
This is despite its research and development expenses more than doubled to Rs 217 crore.
A healthy 35 per cent growth in the US generics business driven by key products such as Tricor and generic Antara more than compensated for the decline in branded revenues. Lupin has 91 products pending approval in the US market. Contribution from its branded business in the US halved this quarter following termination of the marketing tie-up with Forrest Laboratories for the latter’s inhalation device brand Aerochamber.
The company is pinning hopes on the recent launches - low strength (90 mg) formulation of its anti-cholestrol brand Antara and brands – Locoid cream and Alinia – which are co-promoted by the company to grow its branded business in the US.
Growth in India remained weak on account of price cuts under the new drug policy and strike by the drug distributors demanding higher margins. While the management expects the issue to continue in the current quarter, it is confident of closing the year with a 12 per cent growth in sales.