BY OUR PHARMA CORRESPONDENT
8 August, 2005: The Indian pharmaceutical company Lupin Limited has signed an agreement with and Kyowa Pharmaceutical Industry Co. Ltd., Japan, to market finished formulations in Japan, said a company release.
As per the agreement both the companies will together distribute Lupinís products in Japan. The arrangements involve Lupin undertaking product development and manufacture whereas Kyowa will bring strengths in conducting biostudies, obtaining regulatory approvals and marketing in Japan.
Japan at USD 52 billion is the second biggest market for pharmaceutical products in the world. Generics account for approx 5% of the total pharma market in Japan. However, the government is actively supporting the use of generics in order to bring down the cost of medicines in the country.
This is Lupinís first major to enter the attractive Japanese market, Dr D B. Gupta, chairman, Lupin Limited, said in the release.
Tadashi Sugiura, President, Kyowa Pharmaceutical Industry Co. Ltd., said, "India is the fastest growing country in the world in terms of generic drugs and thus we cannot foresee future growth without getting along with Indian companies."
Headquartered in Mumbai, Lupin develops, manufactures and markets generic intermediates, active pharmaceutical ingredients and finished dosages. Its FY 2004-05 revenues were Rs.12 billion. 11 of Lupinís plant have been approved by the USFDA and two facilities have been approved by the UKMHRA.
Lupin Limitedís net sales for the quarter ended 31st Dec 2004 increased by 10% to Rs.2,796 million from Rs.2,543 million, a year ago. During the quarter under review, the domestic revenues increased by 11% to Rs.1,464 million from Rs.1,314 million last year. Of this domestic finished product revenues increased by 15% to Rs.1,139 million (Rs.990 million) driven by robust growth in the CVS and other lifestyle diseases segments. Export revenues increased by 8% to Rs.1,332 million (Rs. 1,229 million). Of these, API exports revenues from the advanced markets increased by 26% to Rs. 420 million (Rs. 334 million).
During the quarter under review, the company incurred Rs.81 million on account of Suprax sales promotion expenses. Research and development spend (excluding depreciation) during the quarter increased from Rs.99 million to Rs.182 million in the current year. Consequent to the above, EBIDTA (Earnings before interest, depreciation, tax & amortization) was at Rs.414 million (Rs.764 million). Interest and finance charges for the quarter were lower at Rs.71 million (Rs. 132 million). Profit before Tax was at Rs. 261 million (Rs.560 million). Tax provision (current) for the quarter was lower at Rs.30 million (Rs.154 million) on account of increased revenues from EOU unit and increased R&D spends. As a result, net profit for the quarter was at Rs.245 million (Rs.400 million).
The company filed two ANDAs and four DMFs with the USFDA; besides, one COS with the EDQM was also filed during the quarter under review.
For the 9 months ended 31st December 2004, Lupin recorded a net sales growth of 3% at Rs. 8,719 mn (Rs.8,464 million). Net profit was at Rs.626 mn as against Rs.690 million, according a Lupin release.
Kyowa, based in Osaka, develops, manufactures and markets its finished products in Japan. Kyowa has a strong presence in CNS, CVS and GI therapeutic segments and their revenues in 2004-05 were JPY 7.0 billion.
BY OUR PHARMA CORRESPONDENT