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About the Company
Lupin Limited is a Mumbai based transnational pharmaceutical company that produces generic & branded formulations and APIs for
the developed and developing markets of the world. The company got incorporated in1968 as a manufacturer of Tuberculosis drugs.
Over the years, the company has moved up the value chain and has not only mastered the business of intermediates and APIs, but
has also leveraged its strengths to build a formidable formulations business globally.
Today the company sells its products in more than 70 across the world. It is among the top 10 players of US and Japan marketwhich
are the two fastest growing drug market of the world. The company is the fastest growing pharmaceutical players in India and
also the fastest growing Generic player in South Africa.
Lupin has manufacturing facilities in India as well as in Japan. In India the manufacturing facilities are located in Goa, Tarapur,
Ankleswar, Jammu, Indore, Aurangabad and Mandideep. These facilities are approved by international regulatory agencies like US
FDA, UK MHRA, Japan’s MHLW, TGA Australia, WHO, and MCC South Africa.
Investment Rationale
The company is all set to acquire Japan’s I’rom Pharmaceutical Co., an injectables manufactures. This is the second acquisition of
Lupin in Japan. Earlier the company has acquired Kyowa Pharmaceutical Industry Co., which makes oral products, in Japan. This
acquisition will enable Lupin to offer both oral as well as injectables to its clients. The combined sale of both companies is expected
to reach $ 230-240mn in FY12. This will take the contribution of Japan to the company’s revenue to 15% from the current around
12%.
Apart from Japan, the company is also eyeing to enter in certain markets in Latin America and Central & Eastern Europe.
Lupin has recently got approval to launch oral contraceptive (OC) in U.S. OC business is of high margin and the company is
expected to fetch $100-200mn in the next two years from OC business. In US prescription market, Lupin has targeted to reach to 3rd
position from its current 5th position.
Valuation
The stock is currently trading at 17.77x to the earnings of FY13E and 15.48x to the earnings of FY14E. Consolidated revenue and
PAT are expected to grow at a CAGR of 18% and 14% respectively over FY11 to FY14E. We set a target price at ` 520.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
About the Company
Lupin Limited is a Mumbai based transnational pharmaceutical company that produces generic & branded formulations and APIs for
the developed and developing markets of the world. The company got incorporated in1968 as a manufacturer of Tuberculosis drugs.
Over the years, the company has moved up the value chain and has not only mastered the business of intermediates and APIs, but
has also leveraged its strengths to build a formidable formulations business globally.
Today the company sells its products in more than 70 across the world. It is among the top 10 players of US and Japan marketwhich
are the two fastest growing drug market of the world. The company is the fastest growing pharmaceutical players in India and
also the fastest growing Generic player in South Africa.
Lupin has manufacturing facilities in India as well as in Japan. In India the manufacturing facilities are located in Goa, Tarapur,
Ankleswar, Jammu, Indore, Aurangabad and Mandideep. These facilities are approved by international regulatory agencies like US
FDA, UK MHRA, Japan’s MHLW, TGA Australia, WHO, and MCC South Africa.
Investment Rationale
The company is all set to acquire Japan’s I’rom Pharmaceutical Co., an injectables manufactures. This is the second acquisition of
Lupin in Japan. Earlier the company has acquired Kyowa Pharmaceutical Industry Co., which makes oral products, in Japan. This
acquisition will enable Lupin to offer both oral as well as injectables to its clients. The combined sale of both companies is expected
to reach $ 230-240mn in FY12. This will take the contribution of Japan to the company’s revenue to 15% from the current around
12%.
Apart from Japan, the company is also eyeing to enter in certain markets in Latin America and Central & Eastern Europe.
Lupin has recently got approval to launch oral contraceptive (OC) in U.S. OC business is of high margin and the company is
expected to fetch $100-200mn in the next two years from OC business. In US prescription market, Lupin has targeted to reach to 3rd
position from its current 5th position.
Valuation
The stock is currently trading at 17.77x to the earnings of FY13E and 15.48x to the earnings of FY14E. Consolidated revenue and
PAT are expected to grow at a CAGR of 18% and 14% respectively over FY11 to FY14E. We set a target price at ` 520.
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