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| Lupin sales growth leaps over volume growth |
| Vandana Gombar & Joe C Mathew / New Delhi Oct 22, 2009, 00:47 IST |
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Lupin— the largest manufacturer of anti-TB drugs in the world — has recorded one of the sharpest rise in sales in the domestic market over the last 12 months, according to the latest data available from research firm ORG-IMS.
The Mumbai-based company recorded a sales growth of 12.8 per cent in value terms on a unit growth of a mere 0.9 per cent during the year (from Sep 2008 to Aug 2009) compared with the same period last year, implying more income per unit sale and better profitability. This is better than industry trends. For the industry as a whole, the value growth recorded during the period is 12.4 per cent — from Rs 33,273 crore to Rs 37,384 crore — while the unit growth is 4.5 per cent.
The better margins are attributable to the company’s penetration into high-margin segments like cardiac, respiratory and anti-diabetic drugs. In the respiratory segment, for instance, Lupin is the fastest growing company with sales up 26.7 per cent during the year (Sep 2008-Aug 2009). It is also the fastest growing in the anti-diabetic segment, with sales up 40.8 per cent.
| HIGH ON SALES |
| |
Annual* growth |
| in Volume |
Value |
| Industry |
4.5 |
12.4 |
| Lupin Ltd |
0.9 |
12.8 |
| SEGMENTS |
| Cardiac |
(-)0.8 |
13 |
| Respiratory |
9.3 |
26.7 |
| Anti-diabetic |
25.1 |
40.8 |
| Anti-TB |
3.1 |
(-)9.7 |
|
Figures in per cent
*Moving annual total from
Sep 2008 to Aug 2009
Source: ORG IMS Consulting
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“Lupin’s focus on niche therapy segments and value-added difficult-to-make controlled release products, backed by an integrated value chain, gives us a better control over per product revenues and profit margins therein,” a company spokesperson explained.
Analysts said the company stands out for consistent good performance. “Among the top 10 players in the domestic market, Lupin is doing very well. It has a growing portfolio in the chronic segment like cardiovascular, diabetes and asthma drugs and has consistently grown at a CAGR (compounded annual growth rate) of 23 per cent over the last five years, compared with an industry average of 11-12 per cent,” Manoj Garg, an analyst tracking the company at Emkay Research, said.
In its core segment of TB medicines, the company, however, saw a 9.7 per cent drop in value while volume growth was at 3.1 per cent. Lupin’s acquisition of US marketing rights of drug Antara, its outlicensing deal with Salix Pharma and its inroads into high growth markets like Japan means that “...it has the potential to emerge as one of the largest pharma companies in India,” Emkay Research said.
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