Lupin settles dispute with GAVIS Pharma and Novel Laboratories; stock ends higher

Lupin Ltd, an Indian multinational pharmaceutical company based in Mumbai, is one of the largest generic pharmaceutical companies by revenue in the world.

In 2015, the pharma major sucessfully acquired the privately held US based GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS). Through this acquisition, Lupin's scale in the US generic market was greatly enhanced, as well as its pipeline in dermatology, controlled substance products and other high-value niche generics.

In January-March 2018, the company had to incur its first impairment on Gavis' assests, while the second impairment provision was made in the October-December quarter last year, amounting to Rs1,580. The company had to incur a consolidated net loss of Rs835cr in the respective quarter.

On Wednesday, via regulatory filing to the exchanges, Lupin Ltd said that its dispute with the sellers in the Gavis/Novel transaction has been resolved amicably to the satisfaction of all parties.

On NSE, the company's stock ended at Rs962 higher by 1.86%  or Rs17.60 from its previous closing on the exchange.