Gavis Pharmaceuticals, a subsidiary of the company, has has received final approval for its Hydrocodone Bitartrate and Acetaminophen tablets from the US Food and Drug Administration (USFDA), Lupin said in a statement.
Healthcare company Lupin is expected to show strong growth in July-September quarter due to US business. Profit is seen rising 80 percent year-on-year to Rs 736.5 crore but interest cost may limit bottomline growth, according to analysts polled by CNBC-TV18.
Drug firm Lupin today said its subsidiary Gavis Pharmaceuticals has received final approval from the US health regulator to market potassium chloride extended release capsules, used for treating potassium deficiency in the bloodstream, in the American market.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is likely to jump 64.6 percent to Rs 1,344.2 crore and margin may expand 500 basis points to 31 percent compared with year-ago period.
Majority of brokerages retained their ratings on the stock but half of them slashed target price, citing caution over earnings due to likely higher R&D expenses and cut in FY18 sales guidance by the company.
Analysts feel exclusivity on Glumetza generic & full quarter of price hikes on Fortamet generic may drive US numbers.
The pharma major said its US subsidiary, Lupin Pharmaceuticals Inc has launched the first product from its GAVIS pipeline, Zolpidem Sublingual tablets 1.75 mg & 3.5 mg in the US.
"I now the first half of this year has been challenging for us. Q3, you have already started seeing recovery. Q4, you will more so and into the next year, but when I think about the business from the next couple of years' perspective, we are set for growth in the US," Vinita Gupta of Lupin says.
In an interview with CNBC-TV18‘s Sonia Shenoy & Latha Venkatesh, Praful Bohra, VP- Research, Religare said that Lupin‘s numbers are weak due to decline in the US business.
Ramesh said the acquisition would not be a strain on Lupin‘s balance sheet, which was virtually debt free and has a cash surplus of USD 200 million
The deal will give Lupin access to specialty generic drugs and niche products in dermatology, gastro intestinal and injectables
The deal, which is cash-free and debt-free, widens the company's pipeline in dermatology and controlled substance products, Lupin said in a statement.
Another important point to note was that its Q1FY15 numbers were quite strong led by US sales and the street also had expected the company to report weak numbers.