Quarter I, FY2019 – Results

Pharma Major Lupin Limited reported its financial performance for the first quarter ending June 30th, 2018. These results were taken on record by the Board of Directors at a meeting held in Mumbai today.

Key Financial and Performance Highlights

  • Sales for the quarter were Rs. 37,746 m. compared to Rs. 39,785 m. in Q4 FY2018 and Rs. 38,068 m. in Q1 FY2018
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter was Rs. 7112 m. compared to Rs. 8536 million in Q4 FY2018 and Rs. 8003 million in Q1 FY2018
  • Net profits before exceptional items for the quarter were Rs. 2028 million compared to Rs. 3586 million In
    Q4 FY2018 and Rs. 3581 million in Q1 FY2018
  • Investment in research for the quarter was Rs. 3753 million., representing 9.9 percent of sales
  • Plans on warning letter resolution on track

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “The first quarter of FY2019 has been subdued, primarily on account of the US and Japan. We have made meaningful progress in building our Complex Generics and Specialty business with the launch of SolosecTM in the US and our successful partnership to commercialize biosimilar Etanercept with Nichi-Iko for Japan and Mylan for Europe and other markets. We remain committed to accelerating new product introductions, evolving our business and delivering on operational and cost efficiencies.”

Income Statement Highlights – Q1 FY2019

  • Material cost increased by 410 bp to 38.3 percent of sales, at Rs. 14,442 million compared to Rs. 13,626 million in
    Q4 FY2018
  • Personnel cost increased by 160 bp to 19.9 percent of sales, at Rs. 7494 million compared to Rs. 7286 million. in
    Q4 FY2018
  • Manufacturing and other expenses decreased by 90 bp to 30.1 percent of sales at Rs. 11,354 million compared to Rs. 12,338 million in Q4 FY2018
  • Investment in research for the quarter was Rs. 3,753 million, representing 9.9 percent of sale

Balance Sheet Highlights

  • Operating working capital decreased to Rs. 56,395 million as on June 30th, 2018 compared to Rs. 58,883 million as on March 31st, 2018. The working capital number of days improved to 133 days as on June 30th, 2018 compared to 138 days as on March 31st, 2018
  • Capital Expenditure for the quarter was Rs. 1833 million
  • Net debt-equity ratio for the company stands at 0.40:1

Operational Highlights

North America

Lupin’s North America sales for Q1 FY2019 were Rs. 11,858 million compared sales of Rs. 14,990 million during  Q4 FY2018 and Rs. 16,018 million during Q1 FY2018; accounting for 31 percent of Lupin’s global sales.

  • Q1 FY2019 sales were USD 168 m. compared to USD 224 m. during Q4 FY2018 and USD 238 m. during Q1 FY2018
  • The Company launched 3 products in the US market during the quarter. The company now has 160 products in the US generics market
  • Lupin is the 4th largest pharmaceutical player in the US by prescriptions (IQVIA MAT June 2018)
  • Lupin is now the market leader in 61 products in the US generics market and amongst the Top 3 in 112 of its products (market share by prescriptions, IQVIA June 2018)

India

Lupin’s India formulation sales grew by 23.6 percent to Rs. 11,924 million during Q1 FY2019 as compared to Q4 FY2018 and grew by 30.7 percent ( adjusted for excise duty ) compared to Q1 FY2018; accounting for 32 percent of Lupin’s global sales.

Lpin is the 5th largest company in the Indian Pharmaceutical Market (IQVIA MAT June 2018).

Asia-Pacific (APAC)

Lupin’s APAC sales were at Rs. 6077 million during Q1 FY2019 compared to sales of Rs. 6637 million during Q4 FY2018 and Rs. 5989 million during Q1 FY2018; accounting for 16 percent of Lupin’s global sales.

Lupin’s Japan sales were JPY 8129 million during Q1 FY2019 compared to JPY 8497 million during Q4 FY2018 and JPY 8585 million in Q1 FY2018.

Lupin remains the 6th largest generic player in Japan (IQVIA MAT June 2018).

Lupin’s Philippines sales were PHP 352 million during Q1 FY2019 compared to PHP 760 million during Q4 FY2018 and       PHP 350 m. during Q1 FY2018.

Europe, Middle-East, and Africa (EMEA)

Lupin’s EMEA sales were Rs. 2760 million for Q1 FY2019 compared to sales of Rs. 3513 million during Q4 FY2018 and Rs. 2259 million during Q1 FY2018; accounting for 7 percent of Lupin’s global sales.

Lupin’s South Africa sales were ZAR 261 million during Q1 FY2019 compared to ZAR 310 million during Q4 FY2018 and ZAR 209 million during Q1 FY2018.

Lupin remains the 4th largest generic player in the South African market (IQVIA MAT June 2018).

Lupin’s Germany sales were Euro 7.5 million during Q1 FY2019 compared to Euro 8.1 million during Q4 FY2018 and   Euro 6.7 million during Q1 FY2018. 

Latin America (LATAM)

Lupin’s LATAM sales were Rs. 1256 million during Q1 FY2019 compared to Rs. 1645 million during Q4 FY2018 and Rs. 1269 million during Q1 FY2018; accounting for 3 percent of Lupin’s global sales.

Lupin’s Brazil sales were BRL 25 million during Q1 FY2019 compared to BRL 44 million during Q4 FY2018 and BRL 36 million during Q1 FY2018.

Lupin’s Mexico sales were MXN 159 million during Q1 FY2019 compared to MXN 167 million during  Q4 FY2018 and MXN 149 million during Q1 FY2018.

Global API

Global API sales increased by 27.5 percent to Rs. 3581 million during Q1 FY2019 as compared to Rs. 2808 million during Q4 FY2018 and  by 28.2 percent  compared to Rs. 2793 million during Q1 FY2018 (adjusted for excise duty growth – 31.9 percent); accounting for 10 percent of Lupin’s global sales.

Research and Development

Revenue Expenditure on R&D during Q1 FY2019 amounted to Rs. 3753 million, 9.9 percent of sales as against Rs. 4015 million, 10.1 percent of sales during Q4 FY2018 and Rs. 4999 million, 13.1 percent of sales during Q1 FY2018.

Lupin filed four ANDA and received five approvals from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 402 as of June 30th, 2018, with the company having received 240 approvals to date.

The company now has 38 first-to-files (FTF) filings including 16 exclusive FTF opportunities. Cumulative DMF filings stands at 193 as of June 30th, 2018.

The company received approval for 1 MAA from the European authority during the quarter. Cumulative filings with European authorities now stands at 61 with the company having received 58 approvals to date.

– Medical Buyer Bureau

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