On August 10, 2021 Pharma major Lupin Limited [BSE: 500257 | NSE: LUPIN] reported its financial performance for the quarter ending June 30, 2021 (Press release, Lupin, AUG 10, 2021, View Source [SID1234586275]). These unaudited results were taken on record by the Board of Directors at a meeting held today.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
Financial Highlights (from Continuing Operations) – Consolidated IND-AS
Income Statement highlights – Q1 FY2022
Gross Profit was INR 27,094 mn compared to INR 24,417 mn in Q4 FY2021, with gross profit margin of 63.9%.
The Gross Profit was buoyed by the USD 50 mn received from Boehringer Ingelheim for achieving key milestones for its novel MEK inhibitor compound collaboration
Personnel cost was 18.5% of sales at INR 7,837 mn compared to INR 6,402 mn in Q4 FY2021
Manufacturing and other expenses were 24.3% of sales at INR 10,309 mn compared to INR 11,178 mn in Q4 FY2021
Investment in R&D for the quarter was INR 3,737 mn (8.8% of sales)
Balance Sheet highlights
Operating working capital was INR 59,615 mn as on June 30, 2021
Capital Expenditure for the quarter was INR 1,057 mn
Net Debt as on June 30, 2021 stands at INR (-)3,453 mn
Net Debt-Equity for the company as on June 30, 2021 stands at (-)0.02
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, "While the quarter’s profits were bolstered by the Boehringer Ingelheim MEK program income, despite a tough operating environment, we see substantial room for growth. We remain committed to grow our US business both with our inline products as well as ramp up of Albuterol and Brovana, to continue above-market growth in India, and ensure growth in every part of the business. We see meaningful uplift in the second half and remain focused on our journey of expanding margins through driving strong double-digit revenue growth and optimizing costs, while ensuring the safety of our people and the highest standards of compliance."
Royalty/Profit Share Expenses on certain in-licensed/partnered products have been reclassified to Material Costs from Manufacturing and Other expenses starting Q1 FY2022. On a comparable basis, the Gross Margin adjusted for such change would be 63.3% of sales in Q4 FY2021 and 62.7% of sales in Q1 FY2021. Manufacturing & Other Expenses adjusted for this change related to Royalty/Profit Share Expenses would be 28.0% of sales in Q4 FY2021 and 26.9% of sales in Q1 FY2021.
Operational Highlights
North America
Lupin’s North America sales for Q1 FY2022 were INR 13,330 mn, down 10.8% compared to INR 14,952 mn in Q4 FY2021, and up 9.6% as compared to INR 12,160 mn in Q1 FY2021; accounting for 35% of Lupin’s global sales.
Q1 FY2022 sales were USD 172 mn compared to USD 195 mn in Q4 FY2021 and USD 157 mn in Q1 FY2021
The Company filed 3 ANDAs in the quarter and received 3 ANDA approvals from the U.S. FDA, and launched 2 products in the quarter in the US market. The Company now has 167 products in the U.S. generics market.
Lupin continues to be the 3rd largest pharmaceutical player in both U.S. generic market and US total market by prescriptions (IQVIA MAT June 2021). Lupin is now the market leader in 55 products in the U.S. generics market and amongst the Top 3 in 120 of its marketed products (market share by extended units, IQVIA June 2021)
India
Lupin’s India formulation sales for Q1 FY2022 were INR 16,362 mn, up 27.2% as compared to INR 12,866 mn in Q4 FY2021 and up 27.3% as compared to INR 12,854 mn in Q1 FY2021; accounting for 42% of Lupin’s global sales.
India Region Formulations sales grew by 31.0% in the quarter as compared to Q1 FY2021.
Lupin is the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT June 2021).
Growth Markets (LATAM and APAC)
Lupin’s Growth Markets registered sales of INR 3,328 mn for Q1 FY2022, up 9.7% compared to INR 3,033 mn in Q4 FY2021 and up 23.3% as compared to INR 2,699 mn in Q1 FY2021; accounting for 9% of Lupin’s global sales.
Lupin’s Brazil sales were BRL 63 mn for Q1 FY2022 compared to BRL 59 mn for Q4 FY2021 and BRL 55 mn for Q1 FY2021.
Lupin’s Mexico sales were MXN 163 mn for Q1 FY2022 compared to MXN 154 mn for Q4 FY2021 and MXN 123 mn for Q1 FY2021.
Lupin’s Philippines sales were PHP 362 mn for Q1 FY2022 compared to PHP 402 mn for Q4 FY2021 and PHP 278 mn for Q1 FY2021.
Lupin’s Australia sales were AUD 17.1 mn for Q1 FY2022 compared to AUD 14.2 mn for Q4 FY2021 and AUD 12.7 mn for Q1 FY2021.
Europe, Middle-East and Africa (EMEA)
Lupin’s EMEA sales for Q1 FY2022 were INR 2,613 mn, down 30.3% compared to INR 3,749 mn in Q4 FY2021, and up 4.5% compared to INR 2,500 mn in Q1 FY2021; accounting for 7% of Lupin’s global sales.
Lupin’s South Africa sales for Q1 FY2022 were ZAR 273 mn, compared to ZAR 431 mn in Q4 FY2021 and ZAR 237 mn in Q1 FY2021.
Lupin is the 5th largest player in South Africa in the total generics market (IQVIA May 2021).
Lupin’s Germany sales for Q1 FY2022 were EUR 7.4 mn, compared to EUR 5.4 mn in Q4 FY2021 and EUR 7.6 mn in Q1 FY2021.
Global API
Lupin’s Global API sales for Q1 FY2022 were INR 2,459 mn, down 3.8% compared to INR 2,556 mn in Q4 FY2021, and down 39.9% as compared to INR 4,090 mn in Q1 FY2021; accounting for 6% of Lupin’s global sales.
Research and Development
Investment in R&D amounted to INR 3,737 mn (8.8% of sales) for Q1 FY2022 as compared to INR 3,427 mn (9.1% of sales) for Q4 FY2021.
Lupin received approval for 3 ANDAs from the U.S. FDA in the quarter. Cumulative ANDA filings with the U.S. FDA stand at 440 as of June 30, 2021, with the company having received 291 approvals to date.
The Company now has 50 First-to-Files (FTF) filings including 18 exclusive FTF opportunities. Cumulative US DMF filings stand at 202 as of June 30, 2021.