Spiriva approval gives earnings visibility to Lupin; valuations expensive

Lupin’s shares declined 4.5 per cent in Thursday’s intra-day trade as analysts believe the stock's expensive valuations may cap gains arising from the approval for inhalation drug Spiriva (Tiotropium Bromide) by the US Food and Drug Administration. The stock settled 2.6 per cent lower at Rs 852, as against a 0.45-per cent dip in the benchmark BSE Sensex.

"While the Spiriva approval is an important milestone for Lupin, we believe the upside from Spiriva is priced-in at current levels," said Alankar Garude of Kotak Institutional Equities, in a co-authored report with Samitinjoy Basak and Aniket Singh.

Boehringer Ingelheim's Spiriva