Company update: Lupin

Company update: Lupin

Mumbai: Lupin has acquired the US rights for a cholesterol-lowering drug, Antara (Fenofibrate capsules, 43 mg and 130 mg), from the bankrupt US drug company Oscient Pharmaceuticals, for close to $38.61 million (Rs185.33 crore).

Antara had annual sales of $85mn in the US. Antara currently hasa 4.5% share of the Fenofibrate market worth $1.9bn, and grew by 20% in revenue in the last year.

Lupin acquired the drug in a bidding process on 25 September under the procedures of the US Bankruptcy Court. Lupin outbid Akrimax Pharmaceuticals and the private equity player, Paul Capital, and will fund the acquisition from internal accruals. Lupin had previously filed an ANDA with the US FDA to market generic versions of Fenofibrate capsules (43 mg and 130 mg).

On 21 September, prior to the acquisition of Antara, Lupin sold its ANDA to Dr Reddy’s Laboratories. We expect Lupin’s acquisition of Antara to strengthen its branded generic business in the US, which contributed US $74mn in FY2009 to the topline.

Moreover, it is also expected to offset the fall in revenue from Suprax, which is likely to face competition from FY2011. The deal appears to be positive for Lupin.

We are reviewing our numbers after the acquisition.