Lupin drops as foreign brokerage sees risk to Suprax sales

Lupin fell 3.11% to Rs 1,887 at 13:57 IST on BSE after a foreign brokerage reportedly said it sees risk to Suprax antibiotic drug from the Aurobindo Pharma's Cefixime, a bioequivalent to Lupin's Suprax.

Meanwhile, the S&P BSE Sensex was down 204.45 points or 0.71% at 28,595.24.

On BSE, so far 81,000 shares were traded in the counter as against average daily volume of 61,817 shares in the past one quarter.

The stock hit high of Rs 1,941.50 and a low of Rs 1,863.60 so far during the day. The stock had hit a 52-week low of Rs 903.95 on 27 May 2014. The stock had hit a record high of Rs 2,112 on 8 April 2015.

The stock had outperformed the market over the past one month till 15 April 2015, advancing 3.7% compared with Sensex's 1.04% rise. The scrip had also outperformed the market in past one quarter, surging 35.54% as against Sensex's 2.58% rise.

The large-cap pharma firm has equity capital of Rs 89.90 crore. Face value per share is Rs 2.

A foreign brokerage reportedly said that the generic approval for Lupin's Suprax in the United States would hurt Lupin's earnings as this approval has come earlier than expected. This is the first generic approval for Suprax. It may be recalled that Aurobindo Pharma during market hours yesterday, 15 April 2015 said that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Cefixime, a bioequivalent to Lupin's Suprax for oral suspension USP, 100mg/5mL and 200mg/5mL.

Lupin's consolidated net profit rose 26.3% to Rs 601.45 crore on 5.4% growth in net sales to Rs 3144.91 crore in Q3 December 2014 over Q3 December 2013.

Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations as well as biotechnology product and APIs globally.

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