Lupin drops after declaring poor Q1 result

Lupin declined 5.38% to Rs 1,726 at 15:07 IST on BSE after consolidated net profit fell 15.96% to Rs 525.02 crore on 5.7% decline in total income from operations (net) to Rs 3150.23 crore in Q1 June 2015 over Q1 June 2014.

The result was announced during market hours today, 23 July 2015.

Meanwhile, the BSE Sensex was down 50.37 points, or 0.18%, to 28,454.56

On BSE, so far 4.04 lakh shares were traded in the counter, compared with an average volume of 95,294 shares in the past one quarter.

The stock hit a high of Rs 1,835 and a low of Rs 1,716 so far during the day. The stock hit a record high of Rs 2,112 on 8 April 2015. The stock hit a 52-week low of Rs 1,078 on 24 July 2014.

The large-cap company has an equity capital of Rs 89.98 crore. Face value per share is Rs 2.

On consolidated basis, Lupin's operating profit fell 26.7% to Rs 816.60 crore in Q1 June 2015 over Q1 June 2014. Operating profit margin (OPM) contracted to 26.6% in Q1 June 2015 from 33.9% in Q1 June 2014.

Lupin filed 5 Abbreviated New Drug Application (ANDAs) and received 6 approvals from the US Food and Drug Administration (USFDA) during Q1 June 2015. Cumulative ANDA filings with the USFDA stood at 215, as on 30 June 2015 with the company having received 117 approvals to date. The company has 35 First-to-Files (FTF) products which includes 15 exclusive FTF opportunities.

Commenting on Q1 June 2015 result, Nilesh Gupta, Managing Director, Lupin said that slowdown in approvals in the US dampened growth during Q1 June 2015, even as the company continues to improve on gross margins. The company remains focused on evolving research pipeline, ensuring compliance, operational excellence and acquiring meaningful assets, Nilesh Gupta said.

Meanwhile, Lupin entered into a definitive agreement to acquire privately held GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS), subject to certain closing conditions, in a transaction valued at $880 million, cash free and debt free. The transaction has been unanimously approved by the boards of directors of Lupin and GAVIS. The acquisition enhances the company's scale in the US generic market and also broadens pipeline in dermatology, controlled substance products and other high-value and niche generics, Lupin said. GAVIS's New Jersey based manufacturing facility will become Lupin's first manufacturing site in the US, the company said.

GAVIS recorded sales of $96 million in FY 2014 and has over 250 New Jersey based employees. GAVIS currently has 66 ANDA filings pending approval with the US FDA and a pipeline of over 65 products under development.

Commenting on the acquisition, Vinita Gupta, Chief Executive Officer of Lupin said that the acquisition is expected to be accretive to Lupin's earnings from the first full year of operations.

Lupin is a pharmaceutical company producing and developing a wide range of branded and generic formulations as well as biotechnology products and APIs globally.

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