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Lupin Q1FY22 Conference Call Highlights

Lupin Q1FY22 Conference Call Highlights

Published on 13 August 2021 Views 7 Comments 0

Financial Highlights

  • Revenue from operations stood at 4270 crores and grew by 22% YOY from 3528 crores & 12.7% QOQ. Domestic formulations grew 27.3% YoY to 1636.2 crore. API de-grew 39.9% YoY to 245.9 crore.
  • EBITDA stood at 993 crores & grew by 86% YOY from 531 crores & 30% QOQ
  • EBITDA margin also stood at 23% & grew by 8% YOY from 23% & 3% QOQ due to decline in employee costs & other expenses
  • PAT also stood at 542 crores & grew by 406% YOY from 107 crores & 18% QOQ
  • PAT margin also stood at 13% & grew by 10% YOY from 3% & 1% QOQ
  • Margins have improved due to licensing income of US $5 crores Boehringer Ingelheimand for achievement of key milestones by its novel cancer drug, a potential target therapy for patients with difficult-to-treat cancers.

Business Highlights

  • Geographical Mix: North America: 35%, India: 42%, Growth Markets: 9%, Emerging Markets: 7%, Rest of the world: 1%, API: 6%

North America

  • Lupin’s North America sales for Q1 FY2022 were INR 1333 crores, down 10.8% compared to INR 1495 crores in Q4 FY2021, and up 9.6% as compared to INR 1216 crores in Q1 FY2021; accounting for 35% of Lupin’s global sales.
  • The Company filed 3 ANDAs in the quarter and received 3 ANDA approvals from the U.S. FDA, and launched 2 products in the quarter in the US market. The Company now has 167 products in the U.S. generics market.
  • Lupin continues to be the 3rd largest pharmaceutical player in both U.S. generic market and US total market by prescriptions (IQVIA MAT June 2021). Lupin is now the market leader in 55 products in the U.S. generics market and amongst the Top 3 in 120 of its marketed products (market share by extended units, IQVIA June 2021)

India

  • Lupin’s India formulation sales for Q1 FY2022 were INR 1636 crores, up 27.2% as compared to INR 1286 crores in Q4 FY2021 and up 27.3% as compared to INR 1285 crores in Q1 FY2021; accounting for 42% of Lupin’s global sales.
  • India Region Formulations sales grew by 31.0% in the quarter as compared to Q1 FY2021.
  • Lupin is the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT June 2021).

Growth Markets

  • Lupin’s Growth Markets registered sales of INR 332.8 crores for Q1 FY2022, up 9.7% compared to INR 303.3 crores in Q4 FY2021 and up 23.3% as compared to INR 269.9 crores in Q1 FY2021; accounting for 9% of Lupin’s global sales.
  • Lupin’s Brazil sales were BRL 6.3 crores for Q1 FY2022 compared to BRL 5.9 crores for Q4 FY2021 and BRL 5.5 crores for Q1 FY2021.
  • Lupin’s Mexico sales were MXN 16.3 crores for Q1 FY2022 compared to MXN 15.4 crores for Q4 FY2021 and MXN 12.3 crores for Q1 FY2021.
  • Lupin’s Philippines sales were PHP 36.2 crores for Q1 FY2022 compared to PHP 40.2 crores for Q4 FY2021 and PHP 27.8 crores for Q1 FY2021.
  • Lupin’s Australia sales were AUD 1.7 crores for Q1 FY2022 compared to AUD 1.4 crores for Q4 FY2021 and AUD 1.2 crores for Q1 FY2021.

Europe, Middle-East and Africa (EMEA)

  • Lupin’s EMEA sales for Q1 FY2022 were INR 2,61 crores, down 30.3% compared to INR 3,74 crores in Q4 FY2021, and up 4.5% compared to INR 2,50 crores in Q1 FY2021; accounting for 7% of Lupin’s global sales.
  • Lupin’s South Africa sales for Q1 FY2022 were ZAR 27. 3 crores, compared to ZAR 43.1 crores in Q4 FY2021 and ZAR 23.7 crores in Q1 FY2021.
  • Lupin is the 5th largest player in South Africa in the total generics market (IQVIA May 2021).
  • Lupin’s Germany sales for Q1 FY2022 were EUR 0.74 crores, compared to EUR 0.54 crores in Q4 FY2021 and EUR 0.76 crores in Q1 FY2021.

Global API

  • Lupin’s Global API sales for Q1 FY2022 were INR 2,45. 9 crores, down 3.8% compared to INR 2,55.6 crores in Q4 FY2021, and down 39.9% as compared to INR 4,09 crores in Q1 FY2021; accounting for 6% of Lupin’s global sales.

Research and Development

  • Investment in R&D amounted to INR 3,73.7 crores (8.8% of sales) for Q1 FY2022 as compared to INR 3,42.7 crores (9.1% of sales) for Q4 FY2021.
  • Lupin received approval for 3 ANDAs from the U.S. FDA in the quarter. Cumulative ANDA filings with the U.S. FDA stand at 440 as of June 30, 2021, with the company having received 291 approvals to date.
  • The Company now has 50 First-to-Files (FTF) filings including 18 exclusive FTF opportunities. Cumulative US DMF filings stand at 202 as of June 30, 2021.

Other Highlights

  • Lupin has 12-13% market share in Albuterol and the management expects ramp (slower ramp up due to shift to long term contracts) up from Q3, with targeting market share of 18-20%
  • Gross margins have declined due to change in sales mix, less margin in US due to increasing competition & slower Albuterol ramp-up
  • Employee cost increased due to incentives for higher sales & other manufacturing expenses declined due to reclassification of partner expenses in COGS
  • The management guided for double digit growth for both US & India as well as EBITDA margins of 17-18% in H2FY22
  • Price erosion of 4-5% YoY in US due to intense competition
  • The management guided for US$20 crores sales from Q3FY22
  • The management is focused on maximizing inhalation generic opportunities - Albuterol and Brovana AG
  • Total 50 FTF’s(First to Files) including 18 exclusive FTF await U.S.FDA approval
  • UK: gFostair launch preparations on track
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