Buoyed by the strong recovery across segments in Q1, Lupin’s management remains positive on exceeding its previously set guidance of achieving 18 percent margin growth in FY24.
The launch of high-margin products where the company has exclusivity like Spiriva and Prolenza are expected to ramp up the sales numbers and lift operating metrics in the coming quarters. Spiriva is a bronchial asthma inhaler while Prolensa is used to treat inflammation and reduce eye pain for people who have just had cataract surgery.
The management expressed confidence that this momentum can extend further to FY25 and might even exceed the earlier projected margins of late teens.
Also read: Lupin Q1 results: Net profit at Rs 453.33 crore from year-ago loss, tops Street estimates
Moreover, giving an update on the blockbuster respiratory drug Spiriva, Vinitha Gupta, CEO of Lupin revealed that the launch is expected in the ongoing quarter. The company has started production and the shipments are also underway, making way for the launch, she added.
The management also expects to get hands-on opportunities in 5-6 ophthalmic products from its Indore plant, primarily due to the current drug shortage within the segment. Moreover, the company also received correspondence from the US Food and Drug Administration (USFDA) on July 27, approving the changes by Lupin in connection with the concerns raised in the Warning Letter previously issued for its facilities in Pithampur Unit-2, Indore.
Also read: Lupin Q1 Preview: Healthy US sales, favourable base to lift earnings
The importance of the site increases due to the upcoming production of the generic version of Prolensa, projected to be available before the end of this year. In addition to this, the company's management mentioned during its earnings call that approximately 3-4 other products are anticipated to launch in the coming fiscal year.
Meanwhile, the company has also cleared three sites that were under the US FDA’s warning letter and is focused on remediation efforts for Tarapur and Mandideep sites. Both sites are caught under regulatory challenges since November 2022.
The company’s EBITDA margins were 18.5 percent in the quarter, up 1,190 basis points compared with the same period a year ago.
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