BackLupin actively eyeing buys in Latin America
Lupin actively eyeing buys in Latin America
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Mumbai: Mumbai-based drugmaker Lupin is actively evaluating acquisition opportunities in Latin America, its managing director said on Thursday.
“Latin America is an interesting market because of the size itself but it’s a highly competed market," Kamal Sharma told Reuters in a telephone interview.
“We are actively evaluating a few things," he said, but refused to give a timeframe for the deals.
“In the three major geographies, besides the others, like Mexico, Brazil and Argentina, there is a large local industry... plus all the multi-nationals are present... keeping that in mind, we have to be strategically right," he said.
Earlier in the day, Lupin reported a forecast-beating 39.13% rise in consolidated quarterly net profit to Rs224 crore on net sales of Rs1,467 crore.
Oral Contraceptives Biz To Start
Lupin, which has made 26 filings in the oral contraceptives segment so far, expects four US FDA approvals from September onwards, Sharma said.
“We were expecting the approvals to come from April-May but there has been a general delay of about three months by the authorities," he said.
The drugmaker, which stands as the fifth largest generics player in the US market, has set up a dedicated oral contraceptive making facility in Indore.
“We see the facility going on stream from start of April," he said adding, it would remain idle till the approvals start coming.
The revenue from the facility would depend on factors like pace of products approvals, progress of market share and price erosion in the US market, he said.
“The OC (oral contraceptives) market in the US is about $4.5 billion and there has been lesser erosion in prices so far," he said.
Earlier this month, Lupin signed a strategic agreement with Brazil’s state-run Farmanguinhos to supply four-in-one tuberculosis drug for five years.
“To begin with, we would be participating in a tender which comes out every year...Initially, it would be for supply of goods to the Brazilian partner," he said. “... at a later date, we will think about the manufacturing unit."
Shares of Lupin closed at Rs442.85 on Thursday, down 5.25% in a weak Mumbai market.
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