Lupin eyes brands, tie-ups in US

The Rs7,100-crore drugmaker Lupin is looking at enhancing the presence of its branded products in the US (where it earns 42% of its revenues) by acquiring new brands or by forging partnerships with US firms.

Lupin boasts brands like Suprax (antibiotic), Antara (anti-cholesterol) and Aero Chambers (a device used in the treatment of asthma).

Vinita Gupta, Lupin’s group president, said the challenge before the company now is to accelerate the single-digit growth in its branded business to the level of 35% annual growth of its generics business .

Lupin’s overall business is divided 75:25 between generics (comprising products relating to oral contraception, dermatology, ophthalmics) and brands.

“We will add more brands and have a larger portfolio like in the generics,” said Gupta. Segments like paediatrics, respiratory, dermatology and ophthalmology are being looked at for launch of branded drugs and devices.

The aim is to build a continuous pipeline of products for the key US market. “We are trying to work on product categories that have limited competition and where we can enjoy better revenues and market share,” said Gupta.

The firm has around 50 generics in the US; some 120 others are awaiting the regulator’s approval.

However, analysts said Indian drugmakers will be challenged by global generic majors such as Teva, Watson, Mylan and Sandoz.

Sarabjit Kour Nangra, vice-president of research at Angel Broking, said though the number of niche players is limited, there is erosion of prices. Success, therefore, depends on Lupin’s marketing and distribution networks in the US. “Even in niche categories, if the competition intensifies, prices would drop.”