This story first appeared in DNA Money edition on Wednesday, July 10, 2013.
As part of its long-term growth strategy, Lupin, India’s third largest pharma company, is looking to increase contribution of branded business to its overall US revenues to 30% from 21% last fiscal, mostly through the inorganic route.
Lupin group president and CEO-designate Vinita Gupta has been maintaining since the last few quarters that acquisitions would be part of the company’s overall business approach.
While scouting for brands in some geographies, the company is simultaneously looking to buy companies that can provide new technology and market access.
Balaji Prasad and Rohit Goel, analysts at Barclays Equity Research, said Lupin has identified key growth drivers for the next 7-10 years.
“Apart from increasing contribution from branded business, the management will be leveraging focus on speciality segments like derma and oral contraceptives in other geographies and sustaining its strong traction in the US,” they said in a report on Monday.
Among other key growth-drivers would be a strong balance sheet with the flexibility to raise up to $1.7-2 billion if required; a strong distribution network; alliances with doctors to drive growth in Japan; and strategic partnerships to strengthen domestic business.
“Lupin plans to enter the dermatology segment and could potentially acquire derma assets too in the business,” the Barclays analysts said.
The coming years will see Lupin management focus strongly on the oral contraceptive (OC) and dermatology segments. Industry experts think OCs in the US could also be leveraged to venture into other big markets such as the $1.5 billion OC market in Brazil.
With the resumption of OC approvals in the past six months (which saw eight approvals and one launch), OCs are being viewed as a major growth-driver for Lupin.
As part of its long-term growth strategy, Lupin, India’s third largest pharma company, is looking to increase contribution of branded business to its overall US revenues to 30% from 21% last fiscal, mostly through the inorganic route.
Lupin group president and CEO-designate Vinita Gupta has been maintaining since the last few quarters that acquisitions would be part of the company’s overall business approach.
While scouting for brands in some geographies, the company is simultaneously looking to buy companies that can provide new technology and market access.
Balaji Prasad and Rohit Goel, analysts at Barclays Equity Research, said Lupin has identified key growth drivers for the next 7-10 years.
“Apart from increasing contribution from branded business, the management will be leveraging focus on speciality segments like derma and oral contraceptives in other geographies and sustaining its strong traction in the US,” they said in a report on Monday.
Among other key growth-drivers would be a strong balance sheet with the flexibility to raise up to $1.7-2 billion if required; a strong distribution network; alliances with doctors to drive growth in Japan; and strategic partnerships to strengthen domestic business.
“Lupin plans to enter the dermatology segment and could potentially acquire derma assets too in the business,” the Barclays analysts said.
The coming years will see Lupin management focus strongly on the oral contraceptive (OC) and dermatology segments. Industry experts think OCs in the US could also be leveraged to venture into other big markets such as the $1.5 billion OC market in Brazil.
With the resumption of OC approvals in the past six months (which saw eight approvals and one launch), OCs are being viewed as a major growth-driver for Lupin.
No comments:
Post a Comment