The Hindu Business Line : Lupin Q2 net rises 29 pc on sale of finished medicines

Despite its bulk-drugs business being virtually flat, Lupin Ltd has clocked a 29 per cent growth in net profit for the second quarter ended September 30, 2006. The company has posted a net profit of Rs 58.30 crore for the quarter ended September 30, 2006, compared with Rs 45.19 crore in the corresponding period for the previous year.

Total income (net of excise) has increased from Rs 41.55 crore for the quarter ended September 30, 2005 to Rs 51.20 crore for the quarter under review.

The formulation business, where finished dosages of medicines are sold, has grown at about 33 per cent, Lupin's Managing Director Dr Kamal Sharma told Business Line. The export of formulations has grown at 33 per cent and the domestic sales of formulations have grown at 24 per cent, he added.

The active pharmaceutical ingredients (API) or bulk-drugs business has shown a flat performance, in-fact it had dropped a couple of per cent, he said.

This was because of pricing pressures in the segment, besides the delay in getting US regulatory approvals by some companies to whom Lupin supplies, he said.

The domestic API business has grown at 27 per cent, he added.

The Group posted a net profit after minority interest of Rs 51.85 crore for the quarter ended September 30, 2006.

Total income (net of excise) is Rs 50.56 crore for the quarter ended September 30, 2006.

TB alliances

In late-2005, Lupin had forged a spate of alliances with Ranbaxy, GlaxoSmithKline (Philippines) and Aspen Pharma, respectively, to market its tuberculosis drugs.

Dr Sharma said that product registrations were in the process of being done and sales from them would begin to reflect in the forthcoming quarters.

The Ranbaxy alliance would be reflected in the fourth quarter, he indicated.

He also confirmed Lupin's plans to go in for a special economic zone (SEZ) in Maharashtra or Goa.

"We are in active negotiations for the land," he said and indicated that a decision could be expected by November-end.