Lupin Ltd declared its unaudited third quarter (Q3) and nine months ended Dec 31, 2007 results today.

Consolidated Financial Performance Quarter ended December 31, 2007 (Q3)

For Q3, Lupin achieved Sales of Rs. 7381 Mn (Rs. 5156 Mn). Earnings before Interest, Tax, Depreciation and Amortization was at Rs. 2604 Mn (Rs. 999 Mn), reflecting an EBITDA margin of 36% to sales. Profit before tax stood at Rs. 2329 Mn (Rs. 789 Mn), an increase of 195%. Profit after tax was at Rs. 1809 Mn (Rs. 620 Mn,), recording an increase of 192%.

Earnings per share on a fully diluted basis were Rs. 21.8 (Rs. 7.7).

Nine months ended December 31, 2007 (YTD Dec)

For YTD Dec 2007, Lupin recorded Sales of Rs. 20050 Mn (Rs. 15276 Mn), registering a growth of 31%. Earnings before Interest, Tax, Depreciation and Amortization was at Rs. 4898 Mn (Rs. 2799 Mn), reflecting an EBITDA margin of 25% to sales.

Profit before tax stood at Rs. 4186 Mn (Rs. 2185 Mn), an increase of 92%. Profit after tax was at Rs. 3123 Mn (Rs. 1675 Mn), an increase of 86%.

Earnings per share on a fully diluted basis were Rs. 37.9 (Rs. 20.8).

Commenting on the Company’s business results, Dr. Kamal Sharma, Managing Director, Lupin, said, "Our performance in the third quarter is the result of overall good performance led by advanced markets and domestic formulations business alongwith successful monetization of our investments into R&D through sale of IPs. We hope to maintain this momentum which will be strengthened further with our entry into Japan through acquisition of Kyowa.”

Operational Summary

M&A

The most significant highlight of the Company’s performance during the quarter was the acquisition of Kyowa Pharmaceutical Industry Co. Ltd in Japan.

Kyowa, with sales of ¥7.4 Billion for the year ended March 2007, develops, manufactures and markets a range of generics in Japan. Kyowa has major strengths in product development, manufacturing and marketing of quality products. Through this acquisition, Lupin has also obtained Kyowa’s state of the art manufacturing facilities and a Research Centre.

Post acquisition in October, the integration process is on track. Expressing his delight over this move Dr. Desh Bandhu Gupta, Chairman, Lupin, said, “This is a major step forward in the world’s second largest pharma market and will propel Lupin’s overall growth. Kyowa ranks amongst the top eight generic Companies in Japan with a prominent presence in CNS and CVS therapy segments. Our investment in the Japanese market is a reflection of our long-term commitment to this most stringent and at the same time promising healthcare market.”

Earlier during the year, Rubamin Laboratories Limited has been acquired. This acquisition provides stronger focus to its CRAMS business of the company.

Advanced markets

The Company’s Advance markets formulations business comprising US & EU, clocked in Rs. 2296 Mn reporting an overall growth of 144%. Supported by a sound brand extensions strategy, Suprax continues to record promising YTD growth of 79%.

During Q3, the Company’s generic business grew by 165% with Lisinopril maintaining its market leadership and most of the other products featuring amongst the top three in their respective segments.

Domestic Market

The Domestic formulation business reflected a healthy growth of 26% with sales of Rs. 2381 Mn for the quarter.

The Company retained its leadership position in the anti-TB segment and strengthened its domestic business profile further. The life-style disease management segments like cardio-vasculars, anti-asthama, anti-diabetes, etc. reflected a growth of over 35%.

Company’s top ten brands continued to do well during the quarter. Tonact, its top brand grew by around 40%, propelling the growth of the CVS segment. API sales for the quarter stood at Rs. 1856 Mn.

Other World Markets

Lupin has been successful in leveraging its understanding of the generics business in complex markets and has initiated its business in Australia through its subsidiary, Max Pharma Pty Ltd, which commenced commercial operations during the quarter. In CIS, the Company continues to market its product portfolio spanning across multiple therapies.

Research & Development

During Q3, Lupin received an income of Euros 20 Mn, from Laboratoires Servier of France, on account of sale of Intellectual Property related to Perindopril patents. This makes Lupin one of the largest R&D income generators of the Indian Pharma industry.

Progress on Filings

In line with the Company’s strategy of focusing on select complex/ niche value building products in advanced markets the Company filed 4 ANDAs and 3 MAA’s during the quarter. The Company now has over 30 ANDAs awaiting approval from the USFDA. 

Sourced From: The Source