Revenue is seen rising 7.3 percent to Rs 3,375.6 crore in quarter ended December 2015 compared to Rs 3,144.9 crore in year-ago period, driven by domestic business but impacted by US business.
US business, which is around 58 percent of formulation sales, is likely to grow over 30 percent led by more than 20 ANDA (abbreviated new drug application) launches over last six months (including Suprax - used for treatment of bacterial infections - in Q1).
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.
Shares of Lupin fell 4.7 percent intraday Friday (in addition to 2.5 percent decline in previous session) after the brokerage Nomura downgraded the stock to neutral, citing slower US sales growth. Target price reduced to Rs 1,661 from Rs 1,738.
Shares of Lupin fell 3.5 percent intraday on Thursday as brokerage Morgan Stanley said it sees risk to Suprax (antibiotic drug) from the Aurobindo approval.
Lupin MD Nilesh Gupta explains why revenues are in line with expectations.
In an interview to CNBC-TV18, Anmol Ganjoo of Antique Broking share outlook on the pharmaceutical space and trading strategies for various stocks in the sector. He is bullish on Glenmark and Ipca laboratories from the midcap pharma space.
S Ramesh, CFO, Lupin, says that the company has received approval for Suprax drops. He also believes that the drop could help in expanding the market for Suprax. Suprax has gross sales of about USD 800 million and ranges across various strengths.
Pharmaceutical company Lupin has become the latest entrant to the Nifty and will be indexed from September 28. The stock has been an outperformer over the months and S Ramesh, CFO of Lupin expects the company's domestic growth to be maintained at 22-25%.
Lupin arm Lupin Pharmaceuticals Inc has received US Food and Drugs Administration (FDA) approval to market and sell antibiotic Suprax (Cefixime) capsules in 400mg strength.
Indian mid-sized drugmakers are expected to report sluggish sales growth in January-March as delayed product approvals and rising operational expenses take a toll on profit margins.