Lupin posts net loss of Rs 127 cr, US market holds key to firm's rerating

While pricing pressure in the US generics market remains in low single digits, large product approvals are crucial to boost sales

Lupin’s September 2019 quarter (second quarter, or Q2) numbers were boosted by Rs 144 crore of income earned from licensing out a new chemical entity, but one-offs (Rs 546.5 crore) related to US lawsuits and losses on divestment in Japan pulled down the overall performance.

As a result, while profit before tax and exceptional items was up 3.6 per cent year-on-year (YoY), Lupin posted a net loss of Rs 127 crore in Q2 versus a net profit of Rs 266 crore in the year-ago period.

Among geographies, North America seems to be stabilising, with sales up 6.1 per cent YoY.