Lupin shares dip after Mylan's generic drug hits US market

Credit Suisse also downgraded Lupin from 'outperform' to 'neutral' rating as risk reward appeared to be unfavourable

Shares of Lupin Ltd have plunged by 4.5% on BSE following the launch of rival Mylan Inc's generic version of the cholesterol-lowering  Tricor  ( Fenofibrate )  tablets. On Monday, Lupin's shares were closed at Rs 768.05 on BSE.

Also, Credit Suisse has downgraded Lupin from 'outperform' to 'neutral' rating as risk reward appears unfavourable. Credit Suisse' 12-month price target on the Lupin stock is Rs 755.

Mylan Inc  said in a statement on Friday that its unit Mylan Pharmaceuticals Inc has shipped generic Tricor, of 48 mg and 145 mg, after the company has received US Food and Drug Administration (FDA) approval for the product launch.

Lupin had launched the generic version of Tricor, named Antara in November 2012. Teva was the first company that launched the copycat version of Tricor under the exclusivity arrangement with Abbott. Tricor had gone off-patent in November 2011.  

Fenofibrate Tablets, 48 mg and 145 mg, had US sales of approximately $1.2 billion for the 12 months ending March 31, 2013, according to  IMS Health .