Lupin: Strong Buy
Lupin Limited is an innovation led transnational pharmaceutical company producing a wide range of quality, affordable generic and branded formulations and APIs for the developed and developing markets of the world. Lupin was formed with the amalgamation of Lupin laboratories with Lupin Chemicals. Its activities include pharmaceuticals, bulk drugs and formulations, fermentation, bio-technology, natural products and agro chemicals.
- On 5-july, Lupin Pharmaceuticals Inc, has received final approval for its Pregabalin Capsules, 25 mg, 50 mg, 75 mg, 100 mg, 150 mg, 200 mg, 225 mg and 300 mg from the United States Food and Drugs Administration (FDA) to market a generic version of C.P, Pharmaceuticals C.V., LYRICA (Pregabalin) capsules. LYRICA Capsules had annual U.S sales of approximately USD 1.8 billion for the twelve months ending March 2012.
- On 3-July, Lupin pharmaceuticals, has received approval for its Norgestimate and Ethinyl Estradiol tablets, 0.18 mg/0.025 mg 0.215 mg/0.025 mg and 0.25 mg/0.025 mg from the United States Food and Drugs Administration (FDA). Lupin’s Norgestimate and Ethinyl Estradiol tablets are the AB rated generic equivalent of Ortho Tri-cyclen Lo tablets. Norgestimate and Ethinyl Estradiol tablets are indicated for the prevention of pregnancy in women who elect to use oral contraceptive as a method of contraception.
Valuation & conclusion: Lupin is looking to repeat its Japanese business model of expansion through acquisitions in markets like Latin America, Europe and Canada as it looks to strengthen overseas business by FY 13. The company is planning to launch many products like Tricor, Yasmin, Cymbalta, Asacol Seasonale, Solodyn, Ambien CR, Yaz, Cipro OS etc. in the next few quarters. At current market price the stock is trading at 17.4 P/E multiple of its financial year 2014 estimated earnings. Investors are recommended to buy the stock with a short term to long term investment horizon
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- Lupin Q1FY15: Strong traction in key geographies; Accumulate
- Lupin quarterly update: Results above estimates, buy
- Lupin Q4FY14: US generics, low RM costs lead to margin surprise
- Lupin: Buy or sell, to make money?
- Lupin's Q4FY14E sales likely to achieve 25% y-o-y growth; Ranbaxy expected to post sales of 11% y-o-y
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