Lupin Labs To Launch 3 New Products

The $200 million Lupin Laboratories is all set to launch three new products in the generic product market. In the next three years, the company plans to launch injectable cephalesporins which have a total global market of $2 billion. The company is going to start-production of cefotaxine for the European market soon which is going off patent in August 1998 from Hoechst Marrion Russel. Following this Lupin Labs will launch two more injectibles namely ceftriaxone and ceftazidine in the next two years. Ceftriaxone and ceftazidine are currently being produced under patent by Roche Products and Glaxo Wellcome.

Sources said, on completion of the new launches, Lupin Labs will also introduce five oral cephalasporins. Inspite of the fall in cephalasporin prices by over 40 per cent globally, Lupin is confident of the success of the product. However, products which have still not gone off patent, the margins are still quite high.

 

"It is natural for prices to fall sharply after the product goes off patent but players who enter the market at the very start make the largest margins, albeit with a declining trend over time. In the long term we will be relying totally on volume growth." said a Lupin executive.

"The price of cefotaxime in India is $1 per vial against $6-8 per vial globally. So, the export market holds good potential. Overall, the cephalosporin segment is growing at 13-14 per cent, a volume growth to some extent may offset loss of margins." he added.

The company is targetting the US and European markets and has already obtained the US FDA and UK MCA approvals necessary for exporting to these markets. The company has entered into distribution tie up with Merck Generics and Fujisawa of US on a profit sharing basis to market its cephalasporine products.