Lupin’s Q2 2009 net up by 39%

India’s generic firm Lupin Ltd’s second quarter net profit surged 39% from that of the same quarter last year, largely powered by formulation sales abroad.

Lupin’s net profit for the July-September period increased to 1.60 billion rupees ($34.3 million) from 1.16 billion rupees last year. Net sales jumped 23% to 11.15 billion rupees from 9.08 billion rupees, India’s fifth-largest drug maker by revenue announced in a press statement

Lupin’s earnings before interest, tax, depreciation and amortization rose 21% to 2.18 billion rupees, while Ebitda margin remained at 20%.

Lupin’s sales of finished drugs in developed markets such as the U.S., Europe and Japan surged 28% to 4.82 billion rupees. Lupin’s formulations business to these regulated markets contribute up to 43% of the company’s total sales.

Lupin registered a Rs 3.53 billion sales in the U.S. and European Union,  while in Japan the sales were at Rs 1.28 billion.

Lupin’s formulations sales in India also increased 18% from last year to 3.47 billion rupees in the second quarter.

Earlier in October, Lupin  licensed the rights of bioadhesive drug delivery technology to Salix Pharmaceuticals Inc  of US for $5 million upfront and subsequent milestone payments.

Lupin’s bioadhesive drug delivery technology will be used in Salix new version of bowel drug  Xifaxan, or rifaximin.

Lupin will receive $5 million upfront and milestone payments as the drug advances through clinical development, as well as royalties on potential sales.

Lupin will also exclusively supply rifaximin,the active pharamaceutical ingredient (API) in the Xifaxan, to Salix, as per the terms of the agreement.

Salix’s Xifaxan is awaiting U.S. regulatory approval for hepatic encephalopathy, a potentially fatal liver disease.

Rifaximin has also been tested successfully in non-constipation irritable bowel syndrome, recently. Irritable bowel syndrome, which includes altered bowel habits with abdominal pain and discomfort, affects about 15 percent of adults in the United States.

Salix expects to win regulatory approvals for Xifaxan in both the indications and be on the market in 2010 and 2011.

Xifaxan cloacked approximately $80 million in revenue for the year 2008.

Salix estimates the non-constipation irritable bowel syndrome market to be potentially worth about $2.2 billion.

Headquartered in Mumbai, India, Lupin Limited is producing a wide range of generic and branded formulations and APIs for the developed and developing markets of the world.

Besides having leadership positions in the anti-TB and cephalosporins, Lupin has significant market share in key markets in the Cardiovasculars (prils and statins), diabetology, asthma, pediatrics, CNS, GI, anti-infectives and NSAIDs therapy segments.

Lupin is one of the fastest growing top 10 generics players in the two largest pharmaceutical markets of the world — The U.S. (ranked 9th by prescriptions & growing at 92 %) and Japan (ranked 7th and growing at 23%). The company is also the fastest growing, top 5 pharmaceutical players in India (ORG IMS – March 2009) and the fastest growing Generic player in South Africa (ranked 6th and growing at over 30 % YoY – IMS)