Lupin, Glenmark, Sun report growth in double digits

Lupin, Glenmark, Sun report growth in double digits

Mumbai: Three of India’s largest drug makers—Glenmark Pharmaceuticals Ltd, Lupin Ltd, and Sun Pharmaceuticals Ltd—on Friday reported double-digit growth in revenue for the quarter ended December 2009, with one reporting a decline in profit due to one-time expenses.

With 44% growth in sales from the US and European markets, including sales from the recently-acquired US cardiovascular drug Antara, Lupin led the pack with a 31% growth in revenue to Rs1,255.40 crore, and 38% growth in profit to Rs160 crore for the December quarter, over the corresponding period last fiscal.

Glenmark posted a 15.5% rise in profit to Rs94.07 crore, with a 10% growth in revenue to Rs649.65 crore.

Sun Pharma, which has been locked in a takeover battle with Israeli drugmaker Taro Pharmaceutical Industries Ltd for the past three years, posted a 17% drop in profit to Rs339 crore on sales of Rs1,021 crore, an 11% increase, due to non-recurring costs.

A Mint poll of four brokerages had shown profit growth for the sector at 13-31%. Foreign brokerage Nomura Financials Advisory and Securities (India) Pvt. Ltd had projected a 38% growth in Lupin’s profit.

Sun Pharma, Glenmark and Lupin have been trying to expand their presence in the global generic drugs market, a key strategy for which they have been filing abbreviated new drug applications, or ANDAs, in the US.

However, each has also adopted other routes. Lupin and Glenmark have partnered with distribution companies in the US, while Sun Pharma acquired drugmaker Caraco Pharmaceutical Laboratories Ltd. Glenmark has acquired products and distribution channels in Central and Eastern Europe, and has focused on basic research and out-licensing technologies, and inventing new drug candidates for overseas drug makers. Lupin has been looking for partnerships and joint ventures.

A consolidated portfolio including Antara contributed to its revenue boost, Lupin president and executive director Nilesh Gupta said on Friday.

In September, it acquired Antara from the now-liquidated Oscient Pharmaceuticals Corp., resulting in a 78% increase in its branded drug business in the US.

Glenmark improved its earnings on the back of a lower base in the year-ago quarter, as well as extraordinary income of $5 million from US-based Medicis Pharmaceutical Corp. for a research out-licensing deal. Business from Central and Eastern Europe grew 82%, a Glenmark spokesperson said.

Sun Pharma had a setback after the US Food and Drug Administration banned production at its US subsidiary Caraco Pharma. Sun Pharma spokesperson Uday Baldota said the fall in profit was mainly due to the impact on sales from the FDA action, and some one-time expenses.