Lupin shares gain 3% after USFDA approves type-2 diabetes drug; details

Shares of Lupin surged up to 2.92 per cent at Rs 2057.30 per share on the BSE in Friday’s intraday deals. Lupin share price gained after the company announced that it has received tentative approval from the United States Food and Drug Administration (US FDA) for its drug application for Sitagliptin and Metformin Hydrochloride Tablets. 

 

The drug is a generic equivalent of Janumet of Merck Sharp & Dohme LLC. This product will be manufactured at Lupin’s Pithampur facility in India, the company said in a statement. 

 

Sitagliptin and Metformin Hydrochloride Tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. The drug had an estimated annual sale of $1,145 million in the US, according to IQVIA MAT September 2024 data. 

 

The Mumbai-based Lupin reported a 74.1 per cent year-on-year increase in consolidated net profit, reaching Rs 852.63 crore for the July-September quarter of FY25, driven by higher sales. The company had posted a profit of Rs 489.67 crore in the same period last year.

 

Revenue for the quarter stood at Rs 5,672.73 crore, marking a 12.6 per cent increase from Rs 5,038.56 crore in the year-ago period.

 

Sales in North America reached Rs 1,971.1 crore, a 5.6 per cent growth compared to Rs 1,866.6 crore, accounting for 36 per cent of Lupin’s global sales. Meanwhile, India formulation sales totaled Rs 2,009.6 crore, an 18.8 per cent rise from Rs 1,691.5 crore a year earlier, contributing 37 per cent of global sales.

 

The company's earnings before interest, taxes, depreciation, and amortization (Ebitda) surged 44.3 per cent to Rs 1,382.7 crore, up from Rs 958.2 crore last year. The Ebitda margin improved to 25.2 per cent, compared to 19.4 per cent in the same quarter last year.

 

On the equities front, Lupin’s stock has outperformed the market year to date as it has risen 55 per cent, while gaining 63 per cent in the last one year. In comparison BSE Sensex has risen 9 per cent year to date and 18 per cent in a year. 

 

The company has a total market capitalisation of Rs 93,591.21 crore.  Its shares are trading at a price to earnings multiple of 31.22 times and at an earning per share of Rs 65.71. 

 

At 11:58 AM; the shares of the company were trading 8.97 per cent higher at Rs 2051.55 a piece. By comparison, the BSE Sensex was up 0.95 per cent at 79,797.68 level.