Investment Ideas - Lupin Pharmaceuticals Inc

Company profile
Lupin Chemicals Ltd came into being in 1983. In the year 2001, Lupin Laboratories Ltd was amalgamated with the company and the name was changed to Lupin Ltd.
In the year 1987, the company’s  Cephalexin Plant at Mandideep and 7 ADCA plant at Ankleshwar were started. In 2006, the company started commercial production at Jammu. They also operate a dosage production facility at Indore. Lupin has established itself into a leading manufacturer of cephalosporin API’s and in the cardiovascular segment.

Acquisitions
The Company’s acquisition list is quite large.

In the year 2003, Lupin Pharmaceuticals Inc. was formed in USA, to expand the companies  marketing  activities in the US. In the year 2007, the company acquired Rubamin Laboratories Ltd   a Vadodara based company. In Japan Kyowa Pharmaceutical Industry Company Limited, a leading Generic Company was acquired. In the year 1989, the company formed joint venture in Thailand, known by the name Lupin Chemicals (Thailand) Ltd.

During the course of 2008-09, the company concentrated in the Japanese market and received approval from Ministry of Health & Labour Welfare for ten products. Hormosan Pharma GmbH, a generic company in Germany was acquired in this period. The Company holds 36.65% stake in Generic Health Pty Ltd., in Australia, 60% stake in Pharma Dynamics in South Africa and 51% stake in Multicare Pharmaceuticals Philippines Inc in Philippines.
During the year 2009-10, Lupin (Europe) Ltd, UK and Lupin Pharma Canada Ltd, Canada were incorporated. Lupin Holding B V, the Netherlands came under Lupin through Max Pharma Pty Ltd, Australia, which is a wholly owned subsidiary. In January 2010,  Novodigm Ltd, Lupin Pharmacare Ltd and Lupin Herbal Ltd, were amalgamated with the company. In August 23, 2010, the company incorporated Lupin Mexico SA de CV, Mexico as a subsidiary company. This year also saw the increase in stake in Generic Health Pty Ltd., (Generic), Australia, from 49.91% to 76.65% Due to this raise of stake three other companies, Bellwether Pharma Pty Ltd., Australia, Generic Health Inc., U.S.A. and Max Pharma Pty Ltd., Australia, became subsidiaries of Lupin.

Another two companies incorporated were Lupin Philippines, Inc., Philippines and Lupin Healthcare Ltd., India, as subsidiaries in 2011. This year also saw the acquisition of I’rom Pharmaceuticals. In June 2011, Lupin got worldwide rights for the Goanna Brand and the complete range of premium therapeutic oils, rubs and ointments. 

Product range

The company has lined up an impressive range of products, both generic and branded formulations. The company also deals with  Active Pharmaceutical Ingredients (APIs).
The company's product range begins from Cephalosporins, CVS, CNS, Anti-Asthma, Anti-TB, Diabetology, Dermatology, GI, and other therapy segments. Their APIs products include antibiotics, Antibiotics, ANTI-TB, Cardiovasculars, Central Nervous System, Analegesics and ANTI-GOUT, Injectable cephalosporin

Financials

According to openly available data net sales of the company have increased from 5315.89 of last year to 7010.49 cr. This is an increase of 1694.60 Cr. Other operating income has risen to 112.02 which is also higher than last year’s 68.94 Cr.  This makes the total income of the company 7122.51 an increase of 1737.68 Cr. from last year’s figure of 5384.83 Cr. Cost of Employees has increased by 131.86 Cr. totaling 713.08 Cr. Other expenses totals 2004.71 Cr. Net profit stands at 1260.43 Cr.( after tax). The company’s reserves stand at 4757.20 as against 3645.08 last year. The Basic EPS stands at 28.9 against 18.02 last year. The diluted EPS is 28.07 as against 17.94 last year.

At the time of writing this note, in a latest news Lupin Ltd has informed BSE that its Board of Directors of the Company, has recommended dividend @ 200% i.e. Rs. 4/- per share of the face value of Rs. 2/- each for the year ended March 31.The Company's shares were trading at Rs.751.25.

Shares of the Pharma sector are always considered as a safe investment for various reasons. Putting together all available data collected we can be assured that this company has a good potential to do well in times to come. This company’s shares could be bought on dips for short term and long term investments.

Disclaimer: I do not hold any shares or any other interest in this company