Improved US growth outlook drives Lupin stock prices to 52-week high
NEW DELHI : Lupin saw its stock prices scale 52-week highs on Monday, helped by an improved earnings outlook. The stock has gained almost 67% since the end of March. New launches in the US during the last quarter and lower competitive intensity in the base business lifted the company’s overall Q1 FY24 performance as it returned to profits compared to loss in the year-ago quarter, adding to confidence.
Lupin has been also able to resolve regulatory issues with the US drug regulator (USFDA) recently pertaining to two manufacturing facilities in Goa and Indore that had remained under US scanner for long. These clearances are likely to help aid multiple product launches in the US markets, improving the company’s growth outlook in the world's largest pharmaceutical market. Lupin’s revenues from the US markets, contributing to 34% to overall revenues, grew 57.4% year-on-year and 2.6% sequentially during Q1 FY24.
The company had received four new drug approvals for launches by the USFDA and launched three products in the quarter in the US, taking the total number of generic products in the US markets to 158. Analysts said that the company’s base business performance is likely to have remained strong with lower pricing pressure. However, the company in June also launched the HIV treatment product Prezista generics with 180 days exclusivity for one dosage strength.
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