BackLupin’s Q1 net rises 43%, signs pact with US’ Romark Labs
Net profit increases to `401 crore from `280.4 crore a year earlier; agreement with Romark Labs to help sell anti-diarrheal drug Alinia in the US
Premium(Ramesh Pathania/Mint)
Mumbai: Lupin Ltd posted a 43% rise in the June quarter profit from the year earlier, thanks to its strong performance in the US market.
Net profit rose to ₹ 401 crore from ₹ 280.4 crore, it said on Wednesday. Revenue grew 9.1% to ₹ 2,420.7 crore.
“We have had a good quarter fuelled by strong business performance in the US as well as improved operational efficiencies that have led to stronger margins. We continue on the road to growth in Ebidta (earnings before interest, taxes, depreciation and amortization)," said managing director Kamal K. Sharma.
The company has also signed an exclusive licensing agreement with Romark Laboratories LC to sell anti-diarrheal drug Alinia in the US, the Indian drug maker said on Wednesday.
“The agreement demonstrates Lupin’s commitment to grow its brand franchise in the US," said Vinita Gupta, group president of Lupin and chief executive officer of Lupin Pharmaceuticals Inc, the US subsidiary. “We are optimistic that Alinia will contribute to our growth and profitability in the coming quarters and years."
There are an estimated 1.2 million cases of giardiasis and 750,000 cases of cryptosporidiosis in the US in a year, diseases that Alinia treats. Centers for Disease Control and Prevention of the US says many of these cases remain undiagnosed. Paediatric diarrhoea is a major complaint in more than 10% of office visits for children below age three, according to the American Academy of Paediatrics.
Alinia will not only enable Lupin to strengthen its existing brand portfolio but also expand its offering, Lupin said.
The product will be marketed along with Lupin’s other anti-diarrheal products Suprax and Antara, the company said.
Shares of Lupin fell 6.50% to ₹ 827.70 on BSE, while the benchmark Sensex declined 0.36% to 18,664.88 points.
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