Lupin Share Price Rises As Nomura Stays Positive Amid Patent Litigation

Pharmaceutical major Lupin Ltd.'s share price advanced in early trading hours on Thursday after brokerage firm Nomura maintained a 'buy' call on the company amid its drug patency litigation issue.

The United States District Court for the District of Delaware had ruled in favour of Astellas Pharma, which had raised a patent infringement case against Lupin's generic product 'Mirabegron'.

"The Court noted that the issues of whether Lupin’s products infringe the ’780 patent, damages, and any additional invalidity theories will be litigated at a consolidated jury trial in 2026," stated an exchange filing on Thursday.

"We believe that there is strong possibility of generics prevailing in this litigation," said a note by Nomura, referring to the generics sold by Indian drugmakers Lupin and Zydus Lifesciences Ltd.

Nomura maintains a positive rating with a target price of Rs 2,350. The brokerage listed two possible cases: a possible restraining order or injunction that prevents generics from selling the product, in which case the earnings per share value estimate for fiscal 2026 may be impacted by 6.7%. They clarified that there is likely no material impact on the next fiscal's estimates though.

In case there is no such restraining order, the brokerage expects generics to continue to sell Mirabegron, with a potential upside to their current estimates.

Brokerage firm UBS holds that generics at-risk sales could be lower now, given the adverse ruling in district court. The next step is for generics to file an appeal to the Federal Court, it said.

Mirabegron is an oral medication which is used to treat overactive bladder. Its benefits are similar to antimuscarinic medication.

Lupin stated that there are no material financial implications. "The company believes it has a strong case and is evaluating further legal action in the matter."

Shares of Lupin rose as much as 1.43% to Rs 1,961.90 apiece. It pared gains to trade 0.56% higher at Rs 1,945 apiece, as of 09:52 a.m. This compares to a 0.06% decline in the NSE Nifty 50.

The stock has fallen 17.55% on a year-to-date basis, but risen 20.52% in the last 12 months. The relative strength index was at 45.29.

Out of 37 analysts tracking the company, 22 maintain a 'buy' rating, 10 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 2,285.06 implies an upside of 17.7%.