Pharma major Lupin's sales in India and US decline in Q1

Pharma major Lupin recorded a decline in sales by 14.95 per cent to Rs 3603.96 crore in the quarter that ended June 2022 with US sales of the company taking a significant dip. Indian formulation sales too faced losses compared to previous years’ Q1. The sales of Lupin during the previous quarter ended June 2021 were Rs 4237.39 crore. 

The company, however, expects a strong bounce back in the next quarter.  “Our numbers are muted this quarter, but we expect a strong bounce back Q2 onwards. Our US sales took a significant dip as we took several strategic decisions to pave the way for building a sustainable and profitable business,” Nilesh Gupta, Managing Director, Lupin Limited, said. 

“During the quarter we pared down inventories and we took shelf stock adjustments on select products. While we continue to see price erosion in our US business and inflation in input materials, our India business continues to do well growing ahead of the market,” he said. 

Lupin’s North America sales for Q1 FY2023 were Rs 1,010.4 crore, down 28.7 per cent compared to Rs 1,416.2 crore in Q4 FY2022; down 24.2 per cent as compared to Rs 1,333 crore in Q1 FY2022; accounting for 28 per cent of the company’s global sales.  

The company filed 4 Abbreviated New Drug Application (ANDAs) in the quarter, received 4 ANDA approvals from the US FDA, and launched one product in the quarter in the US. The company now has 167 generic products in the U.S. 

India formulation sales for Q1 FY2023 were Rs 1,492 crore, up 10.4 per cent as compared to Rs 1,351.1 crore in Q4 FY2022; down 8.8 per cent as compared to Rs 1,636.2 crore in Q1 FY2022; accounting for 41 per cent of Lupin’s global sales. India Region Formulations sales grew by 9.9 per cent in the quarter as compared to Q4 FY2022, down 2.9 per cent as compared to Q1FY2022. The company launched 6 brands across therapies during the quarter. 

Growth Markets however registered sales of Rs 423.7 crore for Q1 FY2023, up 11.2 per cent compared to Rs 381 crore in Q4 FY2022; up 27.3 per cent as compared to Rs 332.8 crore in Q1 FY2022; accounting for 12 per cent of Lupin’s global sales. Similarly, global active pharmaceutical ingredients (API) Sales for Q1 FY2023 were Rs 255.1 crore, up 15.8 per cent as compared to Rs 220.3 crore in Q4 FY2022; up 3.7 per cent as compared to Rs 245.9 crore in Q1 FY2022; accounting for 7 per cent of Lupin’s global sales. 

“All other geographies continue to perform well, and we have now implemented several optimisation measures including addressing our workforce in operations and supporting functions to improve our cost position and ensure competitiveness,” said Gupta. “While the benefits of this optimisation will start accruing Q2 onwards, we are now focused on getting back on the growth path driven by growth in key markets like India and multiple important complex generic launches in the US and other developed markets,” he said.