Another disappointing set of numbers from Lupin, US base business ha s reduced to $150mn and margins have been severely hit. Concall notes below.
FY23Q1
- US revenues came at $121mn, rationalized the portfolio (got out of 15 products) + witnessed double digit price erosion. Expect $150-160mn run rate from Q2. Getting to $200mn will require lot of new products. 15-16% of US sales come from partnered products
- Albuterol market share is 23.2%
- gSuprep: Will be launched in September
- Took manpower reduction of 14-15% across the company (will reduce costs by 20 cr. per quarter), expect employee costs to reduce to 18-18.5%
- Hope to get to 18% EBITDA margins by Q4.
- Competitors are undercutting on products where Lupin is vertically integrated and Lupin has decided to move out of some of these products
- Slightly higher than IPM growth this quarter, added 350 MRs in India
- Somerset EIR now allows launch of nasal spray FTF next year + a gel
- gSpiriva: FDA inspection on partner’s site went well, responding to FDA. Before approval, FDA will probably also inspect Lupin’s facility (Pithampur Unit III). Target action date: 17-08-2022
Biosimilars
- Pune biotech facility will be inspected in October which will open Lupin’s biosimilar pipeline for USA (wil start with Pegfilgrastim with planned launch in Q4FY23)
Disclosure: Not invested (no transactions in last-30 days)
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