Aim for 18% margin by FY24 end, Spiriva launch in Q2, says Lupin CFO

Lupin CFO, Ramesh Swaminathan, also expects lower margin erosion for Spiriva in the US market due to lack of competition from another generic player.

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26 Aug, 2025 12:21

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Following the approval of the generic version of the blockbuster respiratory drug Spiriva, Ramesh Swaminathan, Chief Financial Officer of Lupin, has guided for a target of over 18 percent margin by the end of the current fiscal, in an interaction with CNBC-TV18.

To put things in context, Lupin has been struggling with margin pressures in the last several quarters and has last seen an over 20 percent margin in the April-June quarter of FY22.

Talking about the opportunities offered by Lupin's version of Spiriva, Swaminathan said that the drug will be launched in the July-September quarter, with a ramp-up over the consequent period of time.

Like most analysts, Swaminathan also laid emphasis on the significance of Spiriva in lifting US sales and easing margin pressures for Lupin. "Spiriva generic will aid a substantial addition to our US revenues, and being the only generic player in the market, we do not expect to any big price erosion for the drug," Swaminathan said.

Also Read: Lupin sighs in relief over FDA nod to Spiriva, brokerages also cheer

Though Swaminathan refrained from putting a number for estimated sales for Spiriva, analysts expect revenues of around $40 million in FY24 and over $100 million by FY25 from the drug.

US revenues for Lupin in FY23 was around $600 million, whereas with the newer drugs, Swaminathan hopes to see and improvement in the drugmaker's run rate of $170 million on a quarterly basis for the US market.

The company has already launched the generic of Darunavir, a drug used to treat and prevent HIV/AIDS, in the current quarter in the US market, where it enjoys a 180-day exclusivity period. The company already has Albuterol, another respiratory drug in its US portfolio. Moreover, factoring in a strong pipeline of around 30 inhalation drugs and complex generics, Nilesh Gupta, the Managing Director of Lupin expects to take the US revenue run rate upwards of $200 million on a quarterly basis in the coming time.

Also Read: Lupin's much-awaited approval for gSpiriva is here; will it change the drug maker’s fortunes?

Gupta also pegged high-single digit margin erosion in the US market in the upcoming quarters. Talking about the larger picture for Lupin, Gupta stated that its focus will remain on the pivot from oral solids to complex generics, while the company  will also double down on the India market.

On June 22, shares of Lupin settled 2.6 percent lower at Rs 852.35 on the NSE.

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