Lupin Eyes Sustained Growth In US Market With New Launches, Strong Product Pipeline

Lupin, one of India's leading pharmaceutical companies, is setting its sights on achieving double-digit growth in its US business in the coming quarters.

Commenting on the company's Q3 performance, Ramesh Swaminathan, global chief financial officer at Lupin, expressed confidence in sustained growth across key markets, driven by upcoming launches and a strong product pipeline.

Swaminathan highlighted that Lupin is gearing up for a significant expansion in the US market, with exclusive launches and a strong pipeline of injectables.

"We have an exclusive possibility early next year, which is going to be a big molecule for us," he told NDTV Profit, referring to one of the key products in development.

The company is focusing on high-growth segments like injectables and complex generics. This strategic expansion is expected to drive sustained growth in the US market.

When asked about the growth trajectory, Swaminathan sounded optimistic, saying, "We are pretty optimistic about double-digit growth in America in the quarters to come." 

Despite some pressure on its respiratory products portfolio, Lupin’s India business continues to see strong performance in segments like diabetes and neurology. "There are certain therapy areas under stress, but this is an industry-wide trend. The pharmaceutical market should ideally be growing at least 50% above the GDP growth rate," Swaminathan explained.

In Europe, Lupin's respiratory portfolio and specialty drugs have been key drivers of growth. "Our European business grew by 20%, led by strong performances in Germany and the UK. We expect this momentum to continue," he said.

Addressing the underperformance of the respiratory segment, Swaminathan dismissed any long-term concerns.

"There's no reason why it shouldn't bounce back. There are a lot of patients with respiratory problems, and we are focusing on bringing differentiated products, including our triple combination therapy in India," he added.

Lupin is also ramping up its investments in research and development, with spending expected to rise in the fourth quarter. "A lot of our R&D spend has been pushed to Q4, and we are pivoting towards complex injectables and biosimilars. The biosimilars market is on the verge of taking off, and we see significant opportunities," Swaminathan revealed.

Cost optimisation remains a key focus area for the company to drive margin expansion, according to the top executive.

"A tight leash on costs, combined with top-line buoyancy, has been instrumental in improving margins. Every cost element, from raw materials to vendor development, is being scrutinised to maintain profitability," he said.

With a solid pipeline in the US, continued growth in India and Europe and a disciplined approach to cost control, the company is confident of sustaining its double-digit growth trajectory over the next two to three years.

"The potential is clearly there. The price erosion on some of our in-line products is lower, and with the kind of new products we are bringing to the market, we expect topline buoyancy across all our key markets," Swaminathan said.