Lupin Ltd, the Mumbai-based drugmaker, is looking to invest Rs 450 crore on capacity expansion, ramping up sales force and launching new products in 2010.
The major portion of the investment would be made in India where the company would spend Rs 200 crore to ramp up domestic sales.
“Major investments would happen in India in capacity expansion, creation of new therapeutic areas such as oral contraceptives and biosimilars, etc,” Lupin managing director Kamal Sharma told DNA.
The company has already expanded its reach from 890 medical representatives 3 years back to 3,500 at present and is looking to hire more employees this fiscal in India.
It is also looking for acquisitions in the Indian market if they fit into its overall growth strategy for the next 3 years.
Lupin posted a net profit of Rs 196.3 crore for the April-June quarter, up 40.11% from Rs 140.1 crore registered in the same period of the previous fiscal.
Net sales during the reporting quarter rose 21% to Rs 1,312.1 crore from Rs 1,085.6 crore in the same period last fiscal.
Lupin’s Japanese subsidiary, Kyowa Pharmaceuticals, contributed 10% to consolidated revenues.
However, the company sees that market challenging
in 2010.
“We have grown on an average 15% in Japan in the last 2 years, but this year the Japanese government cut the prices by 16% and our own pipeline is supposed to come up next year, so there is some challenge but I expect to grow by 10-12% there. It will hit 20% growth in the subsequent years,” Sharma said.
The Indian business contributes over 30% to Lupin’s overall revenues and the India region formulations business has grown at a compound annual growth rate of 23 % over the last 5 years.
Lupin has market leadership in anti-TB drugs with a 48% market share.
“Today 85% of Lupin’s drug portfolio in the Indian market is of lifestyle products. The idea is to first test a segment internally and once it is successful, we create a separate division out of it. This has been and will be a successful strategy for Lupin. We have already forayed into newer therapy segments such as central nervous system, nephrology and osteoarthritis,” Shakti Prasad Chakraborty, group president, India Region Formulations, said.
Lupin is looking to grab market leadership and create market in the niche segments such as osteoarthritis and nephrology.
Comments