Lupin Ltd continues to buzz with the news flow. Lupin Pharma Canada recently announced that it was entering into a partnership with Endoceutics, a women's health-focused innovative Canadian biotech company, to commercialize Intrarosa in Canada.
Intrarosa is Endoceutic's flagship product indicated for the treatment of postmenopausal vulvovaginal atrophy offered as a vaginal ovule containing 6.5 mg of Prasterone. The move by Lupin is to strengthen its gynaecology offering. The product has a promising potential looking at the under penetration in the market. It is estimated that over 50% of postmenopausal women suffer from the symptoms of vulvovaginal atrophy and that less than 10% of these women are treated with prescription medicines.
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Meanwhile, the company announced another product launch in the US. Lupin Ltd is launching an authorized generic version of Alinia® (nitazoxanide) Tablets, 500 mg of Romark Laboratories, LC. Nitazoxanide Tablets, 500 mg, are indicated in the treatment of diarrhoea caused by Giardia lamblia or Cryptosporidium parvum in patients 12 years of age and older. The product had estimated annual sales of $56 million in the US (IQVIA MAT January 2021). Looking at the decent size of the product, authorised generics can also generate decent revenues for Lupin.
The company in February had seen the launch of the anti-fungal drug posaconazole in the US. Since the product addresses a slightly bigger market size and given the limited competition opportunity, it can contribute meaningfully to US sales. Assuming a three-player market, analysts expect the drug to be a $30-50 million per annum.
With multiple developments, Lupin's stock prices also remain firm. The product launches remain positive and will strengthen its growth and base business in the US. The company saw major benefits from the launch of respiratory product Albuterol generics, which have led to strong Q2 and Q3 performance, The stock is up around 23% since November lows.
However, the US business will see a high base effect in Q4 as the company had generated strong flu season sales during Q4FY20. Further street will also be watching for more large product approvals and launches to provide significant impetus to earnings moving forward.
The company has a strong presence in the domestic arena too. Nevertheless, domestic sales saw tepid growth during February, which is a near term concern too. “Lupin’s secondary sales were almost flat YoY in Feb’21 v/s 4.6% YoY in Jan’21. The decline in sales in products such as Budamate, Gibtulio, and Tonac impacted performance for Feb’21,” said analysts at Motilal Oswal Financial Services Ltd.
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