Lupin Is Confident Of Achieving 18% Margins By Q4, Says CFO Ramesh Swaminathan

Lupin Ltd. is confident of achieving an operating margin of 18% by the fourth quarter or earlier, as guided earlier, according to Chief Financial Officer Ramesh Swaminathan.

"In the coming quarters, we expect newer products—gSpiriva launches—and that's going to step up our margins. The guidance of 18% certainly stays, and we are fairly confident that we would be in a position to exceed it also," Swaminathan told BQ Prime.

Swaminathan said the company expects to launch gSpiriva, its bigger launch, in the second quarter, and there will be a couple of other smaller launches that will support Lupin's margin growth even after the loss of Darunavir's 180-day exclusivity.

India's business, he said, grew on account of strong momentum in cardiovascular, diabetes, respiratory, and newer therapies like "gastrointestinal and women's health which are potentially growth areas".

On price erosion, he said that there is less competition and drug shortages, which would lead to price stabilisation. "Erosion is stabilising at high single-digit numbers." He said that they benefited in the U.S. market from a drug shortage in the acute therapy portfolio.

The focus is on India, he said while speaking about acquisition. He said the company is also looking at strategic buying, like an U.S. specialty.

On the R&D front, he said that the overall expense as a percentage of sales will keep going down, but the absolute numbers will be around the current range.

Watch the full interview here.