The company's market valuation tanked by Rs 4,835.71 crore to Rs 87,604.29 crore and the stock was the worst performer among the blue-chips on both Sensex and Nifty.
Shares of Lupin, India's third largest drug maker by sales, plunged 5.25% on Bombay Stock Exchange (BSE) after the company posted a 35.11% decline in consolidated net profit for the second quarter (Q2 FY'16) ended September 30.
The company's market valuation tanked by Rs 4,835.71 crore to Rs 87,604.29 crore and the stock was the worst performer among the blue-chips on both Sensex and Nifty.
The pharma company reported a consolidated net profit of Rs 408.8 crore for the September quarter as against a net profit of Rs 630 crore during the same period last fiscal. Net sales in Q2 FY'16 increased to Rs 3,178.3 crore as compared with Rs 3,116.8 crore in the previous fiscal.
Nilesh Gupta, managing director, Lupin Ltd, said that the slowdown in approvals in the US and a lack of material launches continued to dampen growth. "We continue to invest in research and remain upbeat on the pace of approvals and launches to pick up by the fourth quarter," he said.
Lupin management hopes to win approvals for some key products in its largest market, the United States, by the end of this year. The company's earnings were hurt in recent quarters by a slowdown in the pace of approvals to launch new drugs, after the US Food and Drug Administration overhauled the review process.
Among the drugs it expects approval for this year is its copy of the big-selling heartburn pill Nexium, for which it expects an FDA nod "anytime now," Gupta said.
During the second quarter, its India formulations business grew by 9.4%, recording sales of Rs 873.8 crore during the second quarter as against Rs 799 crore during the same period of 2014-15.
The company's US sales stood at $174 million during the second quarter as against $202 million in second quarter of the previous fiscal. Its Japanese business posted net sales of Rs 323.4 crore during the second quarter, as against Rs 345.9 crore in the same period of previous fiscal.
Lupin's South African subsidiary, Pharma Dynamics achieved sales of Rs 99.8 crore in second quarter compared with Rs 105.7 crore last year.
The Mumbai-based firm's active pharmaceutical ingredients (API) sales grew by 1.1% to Rs 321.9 crore during the second quarter as against Rs 318.3 crore during the same period of 2014-15.
To offset the lag in US approvals, Indian generic drugmakers have been trying to expand in the region by buying niche products, or companies with the capability to develop such products.
Lupin bought US firm GAVIS Pharmaceuticals LLC for $880 million in its largest-ever acquisition in July, gaining access to portfolio of speciality generic drugs that are harder to develop and where competition is usually limited.
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