Lupin Falls as Credit Suisse Retains Underperform, Sees 8 Percent Downside

Lupin shares fell over a percent in morning on Tuesday after global brokerage house Credit Suisse has retained underperform rating on the stock with a price target at Rs 800, implying a 7.6 percent downside from January 21 levels. Levothyroxine is a key approval for the company as it accounts for 7-8 percent of FY21 EPS, said the brokerage which expects the firm to reach peak sales of USD 30-35 million of this drug in FY21. The pharma major, on January 21, received approval for its Levothyroxine sodium tablets from the United States Food and Drug Administration (FDA) to market a generic version of AbbVie Inc’s Synthroid tablets.

These tablets will be available in several strength – 25 meg, 50 meg, 75 meg, 88 meg, 100 meg, 112 meg, 125 meg, 137 meg, 150 meg, 175 meg, 200 meg, and 300 meg. The drug is indicated for hypothyroidism as replacement therapy in primary (thyroidal), secondary (pituitary), and tertiary (hypothalamic) congenital or acquired hypothyroidism; and for pituitary thyrotropin suppression as an adjunct to surgery and radioiodine therapy in the management of thyrotropin-dependent well-differentiated thyroid cancer. Levothyroxine sodium tablets had annual sales of approximately USD 2519.6 million in the US (IQVIA MAT September 2018). Credit Suisse expects two more generic approvals for the company in the next financial year 2019-20. – Money Control