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Lupin slumps after weak Q3 performance

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Capital Market
Last Updated : Feb 10 2023 | 1:51 PM IST

Lupin tumbled 4.81% to Rs 736.80 after the company reported 71.9% drop in net profit to Rs 153.5 crore in Q3 FY23 from Rs 545.5 crore in Q3 FY22.

Sales rose by 3.8% YoY to Rs 4,244.6 crore during the quarter.

The drug maker said that the North America sales for Q3 FY23 were Rs 1,527.1 crore, down 3.2% compared to Rs 1,577,5 crore in Q3 FY22 and accounted for 36% of Lupin's global sales.

The company filed 7 ANDAs in the quarter, received 2 ANDA approvals from the U.S. FDA, and launched 4 products in the quarter in the U.S. The company now has 166 generic products in the U.S. As per IQVIA December 2022 data, Lupin continues to be the 3rd largest pharmaceutical player in both U.S. generic market and U.S. total market by prescriptions.

India formulation sales for Q3 FY23 were Rs 1,521.3 crore, up 3.3% compared to Rs 1,473.3 crore in Q3 FY22 and accounted for 36% of Lupin's global sales.

India Region Formulations sales rose by 2.6% in the quarter as compared to Q3 FY22. The company launched 8 brands across therapies during the quarter.

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Lupin is the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT Dec 2022).

Growth Markets [Latin America (LATAM) and Asia-Pacific (APAC)] registered sales of Rs 418.7 crore for Q3 FY23, up 23.5% compared to Rs 339 crore in Q3 FY22 and accounted for 10% of Lupin's global sales.

Europe, Middle East and Africa (EMEA) sales for Q3 FY23 were Rs 380.2 crore, up 11.1% compared to Rs 342.2 crore in Q3 FY2022 and accounted for 9% of Lupin's global sales.

Global API Sales for Q3 FY23 were Rs 281.5 crore, up 9.8% compared to Rs 256.4 crore in Q3 FY22 and accounted for 6% of Lupin's global sales.

EBITDA improved by 36.3% to Rs 550.6 crore in Q3 FY23 from Rs 403.9 crore in Q3 FY22. EBITDA margin was 13% in Q3 FY23 as against 9.9% in Q3 FY22.

While depreciation & amortization cost rose by 8.4% to Rs 220.4 crore, finance cost jumped by 151.8% to Rs 84.1 crore in Q3 FY23 over Q3 FY22.

Profit before tax in Q3 FY23 stood at Rs 246.1 crore, up by 47.3% from Rs 167.1 crore in Q3 FY22. Tax outgo during the period under review was Rs 88.5 crore (up 123.2% YoY).

Investment in R&D was Rs 289.6 crore (6.8% of sales) for Q3 FY23, compared to Rs 354.6 crore (8.7% of sales) for Q3 FY22.

Lupin received approval for 2 ANDAs from the U.S. FDA in the quarter. Cumulative ANDA filings with the U.S. FDA stand at 469 as of 31 December 2022, with the company having received 302 approvals to date.

The company now has 55 First-to-File (FTF) filings including 21 exclusive FTF opportunities. Cumulative U.S. DMF filings stand at 171 as of 31 December 2022.

Lupin is an innovation-led transnational pharmaceutical company headquartered in Mumbai, India. The Company develops and commercializes a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.

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First Published: Feb 10 2023 | 1:35 PM IST

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