Drug Manufacturer Lupin

Hello Friends in this days market is behaving like never before one day it turns positive due to global news and very second day some bad news comes from global market and market suddenly give up. Nobody has idea that either on upside or downside. Even global fund managers also have no idea that how stock market will behave in near days. Global uncertainty is also playing a key role in market. From all over the world global economic macro data shows that global market is slowing down heavily. Consumption slows down already auto sales numbers also reflects it.

If we see in terms of investment opportunity there are some stocks that could run in future not suddenly but will run in longer period of time.

Today I’m also going to talk about a company which has faced lot of USFDA issues for their plants. Yes I am talking about Lupin.

Lupin is a global pharmaceutical company offering a wide range of products such as Branded & Generic Formulations, Biotechnology Products, Active Pharmaceutical Ingredients (APIs) and Specialty. Lupin is a significant player in the therapy areas of Gynaecology, Cardiovascular, Diabetology, Asthma, Paediatric, Central Nervous System (CNS), Gastro Intestinal (GI), Anti-Infective (AI) and Non-Steroidal Anti-Inflammatory Drugs (NSAIDs). Lupin also holds a global leadership position in the Anti-TB and Cephalosporins segments. With a presence in over 100 countries, Lupin offers high-quality yet affordable medicines for some of the most chronic diseases addressing unmet needs in many parts of the world.

Lupin has total 18 world class manufacturing facilities spread across India, Japan, USA, Mexico and Brazil as well.

These facilities are approved by international agencies like USFDA, UK MHRA, Japan’s MHLW, TGA Australia, WHO & MCC South Africa.

Lupin is an innovation led transnational pharmaceutical company developing and delivering a wide range of branded & generic formulations, biotechnology products and APIs globally. The Company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, Anti-Infective and NSAID space and holds global leadership position in the Anti-TB segment.

Lupin is the 8th largest generics pharmaceutical company both in terms of market capitalization (30th June 2018, Bloomberg) and revenues (31st March 2018, Bloomberg LTM) globally. The Company is the 4th largest pharmaceutical player in the US by prescriptions (IQVIA MAT June 2018); 3rd largest Indian pharmaceutical company by global revenues (31st March 2018, Bloomberg LTM); 6th largest generic pharmaceutical player in Japan and 5th largest company in the Indian Pharmaceutical Market (IQVIA MAT June 2018). For the financial year ended 31st March, 2018, Lupin’s Consolidated sales and Net profits before exceptional items were at Rs. 155,598 million (USD 2.41 billion) and Rs. 13,934 million (USD 216 million) respectively.

Lupin has presence in Global Formulation, API & Biotechnology etc. The main business in future for lupin according to me will be Biotechnology.

Lupin’s Biotech facility is spread over 22,000 square meters at Pune, India. It houses a pipeline of 10 biosimilars in various stages of development.

In 2015, the first two Oncology products were commercialized in India – Lupifil and Lupifil-P (biosimilars for molecules Filgrastim and Peg-Filgrastim).

Biosimilar for Etanercept (brand Enbrel®) is being developed for Global markets. A Global Phase-III clinical trial has been conducted across Japan, India and Europe on over 500 patients. Etanercept has been filed for an NDA (New Drug Application) in Japan and a Marketing Authorisation Application in Europe.

Further, the developmental pipeline at Lupin includes a mix of blockbuster products of both microbial and mammalian origin across diverse indications such as Rheumatoid Arthritis, Oncology, Ophthalmology and Osteoporosis targeting a total global market of over USD 30 Billion.

Balance Sheet
Lupin
Mar ’19
Sources Of Funds
Total Share Capital 90.50
Equity Share Capital 90.50
Share Application Money 0.00
Preference Share Capital 0.00
Reserves 17,026.77
Revaluation Reserves 0.00
Networth 17,117.27
Secured Loans 2.21
Unsecured Loans 0.00
Total Debt 2.21
Total Liabilities 17,119.48

Last 3 fiscal performance

Fiscal Year Revenue (in Cr) Profit (in Cr) EPS (in Rs)
2016-17 17119.8 2556.38 56.69
2017-18 15559.84 254.83 5.56
2018-19 16369.37 611.73 20.93

Currently company is in consolidation mode due to USFDA issues. Once it will cleared it will do well

Note: Please don’t buy at currently level if you want to buy then buy in small quantities and consult your financial advisor before taking a buy call.

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