(Reuters) -Indian drugmaker Lupin posted a 73.3% jump in second-quarter profit on Thursday, driven by strong demand for its respiratory drugs.
The firm, which produces complex biosimilars drugs and active pharmaceutical ingredients, reported consolidated net profit of 14.78 billion rupees ($168.16 million) for the quarter ended September 30, from 8.53 billion rupees a year ago.
Revenue from operations climbed 24.2% to 70.48 billion rupees.
For further earnings highlights, click here.
KEY CONTEXT
Indian generic drugmakers get a significant portion of their revenue from North America, where intense competition has led to lower prices, weighing on companies’ margins.
Lupin, which calls itself the third-largest generic pharmaceutical company by prescription in the U.S., manufactures drugs for a wide range of illnesses such as cardiovascular, tuberculosis, respiratory and central nervous system issues.
The drugmaker said its U.S. sales rose 47.3% during the quarter and accounted for 40% of global revenue.
Rivals Cipla and Dr Reddy’s Laboratories both posted subdued sales in the U.S. for the same period.
PEER COMPARISON
Valuation Estimates Analysts’
(next 12 (next 12 sentiment
months) months)
RIC PE EV Pr Reve Prof Mea No. Stock Div
/E ic nue it n of to yie
BI e/ grow grow rat ana price ld
TD Sa th th ing lys target (%)
A le (%) (%) * ts **
s
Lupin 22 14 3. 7.66 6.84 Buy 37 0.89 0.6
.2 .7 24 0
3 7
Cipla 24 15 3. 7.48 0.18 Buy 37 0.90 0.8
.3 .5 79 6
8 9
Dr 20 12 3. 2.57 -9.8 Hol 39 0.91 0.6
Reddy’s .3 .4 13 3 d 7
Laborato 3 1
ries
Zydus 22 14 3. 6.01 -6.9 Hol 26 0.95 1.1
Lifescie .8 .7 94 8 d 2
nces 7 8
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY TO SEPTEMBER STOCK PERFORMANCE
– All data from LSEG
– $1 = XX Indian rupees
($1 = 87.8950 Indian rupees)
(Reporting by Kashish Tandon and Mridula Kumar in Bengaluru; Editing by Leroy Leo)
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