Lupin, Novartis in marketing tie-up

Drug makers Lupin and Novartis have entered into a marketing alliance under which Lupin would sell Novartis’ asthma drug, Onbrez, in India.

The recently-launched product is a once-daily therapy used in the treatment of chronic obstructive pulmonary disease (COPD).

According to the agreement, Novartis would share a part of its revenue from the sales of the drug with Lupin, an industry source said.

An email sent to both Novartis and Lupin did not elicit any response.

Lupin despatched the first lot of the product last week.

The market for COPD in India is estimated to be around Rs 1,693 crore. While Cipla is the leader in the segment with over 48 per cent share, Lupin itself sells various products like Budamate and Telekast and has a 11.4 per cent share of COPD market.

“The partnership with Novartis will enhance its product kitty as well as earn it revenue,” the source said. India forms an integral part of Lupin’s overall business. Over 27 per cent of its revenues came from here during the last fiscal. Its domestic formulation business is growing at around 21 per cent over the past five years.

On the other hand, Novartis is expected to gain from the huge marketing network of Lupin in capturing a significant share.

Onbrez, a dry powder capsule which has to be put in a device – a dry powder inhaler, would be initially available in two strengths – 150 mg and 300 mg. Novartis, which already sells the drug in the US and in some parts of Europe, has recently also received approval for it in China.

Cipla, which has a focus on asthma drugs, also introduced various products in the last two years.

On Friday, shares of Lupin ended session at Rs 567 on the BSE, up 0.2 per cent from their previous close. Novartis shares closed at Rs 671.35, down 1.6 per cent.