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Lupin rises as Q2 impacted due to one-time loss

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Lupin rose 2.29% to end at Rs 772.15 after the pharmaceutical company reported a net loss of Rs 127 crore in Q2 September 2019 due to one-time impact of Rs 546.5 crore.

On consolidated basis, the company reported a net loss of Rs 127 crore in Q2 September 2019 as against a net profit of Rs 265.98 crore in Q2 September 2018. The company's revenue from operations rose 10.34% to Rs 4359.65 crore on YoY basis.

Lupin reported a one-time loss of Rs 546 crore due to adjustments made during the quarter, including provisions worth Rs 379.18 crore toward a Texas lawsuit and a loss of Rs 167.30 crore toward selling stake in a Japanese joint venture, Kyowa CritiCare Co.

Commenting on the results, Nilesh Gupta, managing director, Lupin said, "The reported performance for the quarter was bolstered by the NCE licensing income but impacted by one-off items, adjusted for which, the operational performance was as expected. The US business has now stabilized and will grow based on ramp up of our in-line products and levothyroxine and the launch of our injectables portfolio. Markets like India continue to deliver solid growth. The next financial year is now looking very strong with important growth drivers like India, the in-line generic business in the US coupled with important launches like generic Albuterol in US and Fostair and Etanercept in Europe. Regulatory compliance remains a top organizational priority and we are making steady progress."

Lupin's India formulation sales for Q2 September 2019 stood at Rs 1341.9 crore, up 2.6% as compared to sales of Rs 1307.7 crore during Q1 September 2018.

Revenue expenditure on R&D during Q2 FY2020 amounted to Rs 435.60 crore (10.1% of sales) as against Rs 378.50 crore (8.7% of sales) during Q1 FY2020 and Rs 375.80 (9.7% of sales) for Q2 FY2019.

Lupin received approvals for 4 ANDA from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 427 as of 30 September 2019, with the company having received 274 approvals to date.

The company now has 40 First-to-Files (FTF) filings including 14 exclusive FTF opportunities. Cumulative DMF filings stands at 205 as of 30 September 2019.

Lupin has gained 15.45% in a month compared to a 6.89% rise in Nifty Pharma index.

Meanwhile the S&P BSE Sensex hit a record high and closed 0.55% higher at 40,469.78.

Lupin is an innovation led transnational pharmaceutical company developing and delivering a wide range of branded and generic formulations, biosimilar products and APIs globally. According to IQVIA MAT, Lupin is the sixth largest company in the Indian Pharmaceutical Market as of September 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 06 2019. 15:49 IST