Lupin Share Price Rise After Plans To Invest $250 Million In Florida Facility

Lupin's share price rose in trade today after the drug firm announced it will set up a new manufacturing facility in Coral Springs, Florida. This involves a projected cumulative investment of $250 million over five years to strengthen domestic manufacturing of critical respiratory medicines and create over 200 skilled jobs.

The Mumbai-based drug maker detailed in a regulatory filing that the new site will be key to enhancing medicine security and supply chain diversification, reinforcing the company's position as a global leader in respiratory care. The $250 million investment includes funds earmarked for research & development, infrastructure, and capital expenditures.

The facility, which involves the acquisition of more than 5 acres of land for a 70,000 square feet expansion, is designed to accommodate the production of more than 25 critical respiratory medicines. These products will include vital treatments like albuterol inhalers used for children with asthma.

Christoph Funke, Chief Technical Operations Officer at Lupin, highlighted the strategic importance of the location: "The expansion of Lupin’s footprint in Coral Springs is a core part of our growth strategy." He noted that the new facility will build on the company's existing presence in Florida, which already houses its US headquarters and Advanced Inhalation Research Centre.

The company stated that the Coral Springs facility will anchor US production of critical respiratory therapies, ensuring affordable, reliable access ranging from routine pediatric care to potential pandemic-scale demand. Locally, the project is expected to generate over 200 new long-term, skilled jobs by 2030 in Broward County.

Lupin stock rose as much as 3.12% during the day to Rs 1,965 apiece on the NSE. It was trading 3.66% higher at Rs 1,977 apiece, compared to an 0.08% advance in the benchmark Nifty 50 as of 10:24 a.m.

It had declined 13.52% in the last 12 months and 16.10% on a year-to-date basis. The total traded volume so far in the day stood at 5.9 times its 30-day average. The relative strength index was at 45.7.

Twenty six out of the 40 analysts tracking the company have a 'buy' rating on the stock, 11 recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 2,219, implying a upside of 12%.