SECURITY ANALYSIS AND

PORTFOLIO MANAGEMENT

ASSIGNMENT
On
LUPIN LIMITED
 Submitted by
Neena N Tomy
B2370
MBA B
Lupin Ltd is a transnational pharmaceutical company that produces a wide range of generic,
formulations, and APIs for developing markets of the world. It was formed in 1968 by Desh
Bandhu Gupta, with a vision to be an innovation led, transnational pharmaceutical company.

Lupin's business segments include: Formulations, active pharmaceutical ingredients (APIs),

drug delivery systems and biotechnology. Its drug delivery program is focused on creating and
leveraging technologies that not only provide clinical advantage but also transform and
facilitate better patient convenience and experience. Lupin's therapeutic categories include:
Antibiotics, Anti-Tb, Cardiovasculars, Central Nervous System, Analgesics, Anti- Gout, etc.
Its products include: Cephalexin, Cefaclor, Cefadroxil, Cefprozil, Rifaximin, Ethambutol,
Pyrazinamide, Rifampicin, Rifabutin, Lisinopril, Simvastatin, Prasugrel, Levetiracetam,
Lacosamide, Eslicarbazepine Acetate, Rasagiline Mesylate, Pregabalin, Flupirtine Maleate,
Febuxostat, etc.

Lupin has partnerships with Boehringer Ingelheim, Mylan Inc, MonoSol Rx, LLC; Ypsomed
AG, Boehringer Ingelheim; Acceliant; Celon Pharma; Salix Pharmaceuticals, Ltd; Merck
Serono S.A; LG Life Sciences, Ltd; Yoshindo, Inc; etc. Its subsidiaries include: Lupin
Pharmaceuticals Inc., U.S.A; Hormosan Pharma GmbH; Lupin (Europe) Ltd., U.K; Generic
Health Pty Ltd; Lupin Philippines Inc; Nanomi B.V; YL Biologics Ltd, etc. The company’s
awards include: Ernst & Young Entrepreneur of the Year Award, The Economic Times 500 -
India’s 10 Most Resilient Companies 2012, Risk Management Firm of the year (Pharma),
Outstanding Company of the Year, etc.

Lupin's research program covers the entire pharma product chain. The company's R&D
program is headquartered in the Lupin Research Park located near Pune that houses over 1400
scientists. Lupin's R&D covers:

 Generics Research
 Process Research
 Pharmaceutical Research
 Advanced Drug Delivery Systems (ADDS) Research
 Intellectual Property Management
 Novel Drug Discovery and Development (NDDD)
 Biotechnology Research

Lupin's businesses encompass the entire pharmaceutical value chain, ranging from branded and
generic formulations, APIs, advanced drug delivery systems to biotechnology. The company's
drugs reach 70 countries with a footprint that covers advanced markets such as USA, Europe,
Japan, Australia as well as emerging markets including India, the Philippines and South Africa
to name a few.
 ECONOMIC ANALYSIS
Introduction

India has emerged as the fastest growing major economy in the world and is expected to be one
of the top three economic powers of the world over the next 10-15 years, backed by its strong
democracy and partnerships.
Market size
India’s GDP is estimated to have increased 7.2 per cent in 2017-18 and 7 per cent in 2018-19.
India has retained its position as the third largest startup base in the world with over 4,750
technology start-ups.
India's labour force is expected to touch 160-170 million by 2020, based on rate of population
growth, increased labour force participation, and higher education enrolment, among other
factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.
India's foreign exchange reserves were US$ 405.64 billion in the week up to March 15, 2019,
according to data from the RBI.

Recent Developments

With the improvement in the economic scenario, there have been various investments in
various sectors of the economy. The M&A activity in India reached record US$ 129.4 billion
in 2018 while private equity (PE) and venture capital (VC) investments reached US$ 20.5
billion. Some of the important recent developments in Indian economy are as follows:

 During 2018-19 (up to February 2019), merchandise exports from India have increased
8.85 per cent year-on-year to US$ 298.47 billion, while services exports have grown
8.54 per cent year-on-year to US$ 185.51 billion.
 Nikkei India Manufacturing Purchasing Managers’ Index (PMI) reached a 14-month
high in February 2019 and stood at 54.3.
 Net direct tax collection for 2018-19 had crossed Rs 10 trillion (US$ 144.57 billion) by
March 16, 2019, while goods and services tax (GST) collection stood at Rs 10.70
trillion (US$ 154.69 billion) as of February 2019.
 Proceeds through Initial Public Offers (IPO) in India reached US$ 5.5 billion in 2018
and US$ 0.9 billion in Q1 2018-19.
 India's Foreign Direct Investment (FDI) equity inflows reached US$ 409.15 billion
between April 2000 and December 2018, with maximum contribution from services,
computer software and hardware, telecommunications, construction, trading and
automobiles.
 India's Index of Industrial Production (IIP) rose 4.4 per cent year-on-year in 2018-19
(up to January 2019).
 Consumer Price Index (CPI) inflation stood at 2.57 per cent in February 2019.
  Net employment generation in the country reached a 17-month high in January 2019.

Government Initiatives

The interim Union Budget for 2019-20 was announced by Mr Piyush Goyal, Union Minister
for Finance, Corporate Affairs, Railways and Coal, Government of India, in Parliament on
February 01, 2019. It focuses on supporting the needy farmers, economically less privileged,
workers in the unorganised sector and salaried employees, while continuing the Government
of India’s push towards better physical and social infrastructure.
Total expenditure for 2019-20 is budgeted at Rs 2,784,200 crore (US$ 391.53 billion), an
increase of 13.30 per cent from 2018-19 (revised estimates).
Numerous foreign companies are setting up their facilities in India on account of various
government initiatives like Make in India and Digital India. Mr. Narendra Modi, Prime
Minister of India, has launched the Make in India initiative with an aim to boost the
manufacturing sector of Indian economy, to increase the purchasing power of an average Indian
consumer, which would further boost demand, and hence spur development, in addition to
benefiting investors. The Government of India, under the Make in India initiative, is trying to
give boost to the contribution made by the manufacturing sector and aims to take it up to 25
per cent of the GDP from the current 17 per cent. Besides, the Government has also come up
with Digital India initiative, which focuses on three core components: creation of digital
infrastructure, delivering services digitally and to increase the digital literacy.
Some of the recent initiatives and developments undertaken by the government are listed
below:

 In February 2019, the Government of India approved the National Policy on Software
Products – 2019, to develop the country as a software hub.
 The National Mineral Policy 2019, National Electronics Policy 2019 and Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME II) have also
been approved by the Government of India in 2019.
 Village electrification in India was completed in April 2018. Universal household
electrification is expected to be achieved by March 2019 end.
 The Government of India released the maiden Agriculture Export Policy, 2018 which
seeks to double agricultural exports from the country to US$ 60 billion by 2022.
 Around 1.29 million houses have been constructed up to December 24, 2018, under
Government of India’s housing scheme named Pradhan Mantri Awas Yojana (Urban).
 Prime Minister's Employment Generation Programme (PMEGP) will be continued with
an outlay of Rs 5,500 crore (US$ 755.36 million) for three years from 2017-18 to 2019-
20, according to the Cabinet Committee on Economic Affairs (CCEA).
Road Ahead

India's gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27 and achieve
upper-middle income status on the back of digitisation, globalisation, favourable
demographics, and reforms.
India's revenue receipts are estimated to touch Rs 28-30 trillion (US$ 385-412 billion) by 2019,
owing to Government of India's measures to strengthen infrastructure and reforms like
demonetisation and Goods and Services Tax (GST).
India is also focusing on renewable sources to generate energy. It is planning to achieve 40 per
cent of its energy from non-fossil sources by 2030 which is currently 30 per cent and also have
plans to increase its renewable energy capacity from to 175 GW by 2022.
India is expected to be the third largest consumer economy as its consumption may triple to
US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern,
according to a Boston Consulting Group (BCG) report; and is estimated to surpass USA to
become the second largest economy in terms of purchasing power parity (PPP) by the year
2040, according to a report by PricewaterhouseCoopers.
 INDUSTRY ANALYSIS

Introduction

The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest
in terms of value, as per a report by Equity Master. India is the largest provider of generic drugs
globally with the Indian generics accounting for 20 per cent of global exports in terms of
volume. Of late, consolidation has become an important characteristic of the Indian
pharmaceutical market as the industry is highly fragmented.
India enjoys an important position in the global pharmaceuticals sector. The country also has a
large pool of scientists and engineers who have the potential to steer the industry ahead to an
even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat
AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
The UN-backed Medicines Patent Pool has signed six sub-licences with Aurobindo, Cipla,
Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic anti-AIDS
medicine TenofovirAlafenamide (TAF) for 112 developing countries.
Market Size

The Indian pharma industry, which is expected to grow over 15 per cent per annum between
2015 and 2020, will outperform the global pharma industry, which is set to grow at an annual
rate of 5 per cent between the same period!. The market is expected to grow to US$ 55 billion
by 2020, thereby emerging as the sixth largest pharmaceutical market globally by absolute size,
as stated by Mr Arun Singh, Indian Ambassador to the US. Branded generics dominate the
pharmaceuticals market, constituting nearly 80 per cent of the market share (in terms of
revenues).
India has also maintained its lead over China in pharmaceutical exports with a year-on-year
growth of 11.44 per cent to US$ 12.91 billion in FY 2015-16, according to data from the
Ministry of Commerce and Industry. Imports of pharmaceutical products rose marginally by
0.80 per cent year-on-year to US$ 1,641.15 million.
Overall drug approvals given by the US Food and Drug Administration (USFDA) to Indian
companies have nearly doubled to 201 in FY 2015-16 from 109 in FY 2014-15. The country
accounts for around 30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80
billion US generics market.
India's biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture,
bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per
cent a year and reach US$ 100 billion by 2025. Biopharma, comprising vaccines, therapeutics
and diagnostics, is the largest sub-sector contributing nearly 62 per cent of the total revenues
at Rs 12,600 crore (US$ 1.88 billion).

Investments

The Union Cabinet has given its nod for the amendment of the existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent
under the automatic route for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 13.85
billion between April 2000 and March 2016, according to data released by the Department of
Industrial Policy and Promotion (DIPP).
Some of the major investments in the Indian pharmaceutical sector are as follows:

 India’s largest drug maker Sun Pharmaceutical Industries Limited has entered into a
distribution agreement with Japan's Mitsubishi Tanabe Pharma Corporation to market
14 prescription brands in Japan.
 Syngene International Limited will be setting up its fourth exclusive Research and
Development (R&D) center named Syngene Amgen Research and Development Center
(SARC) for a US-based biotechnology company Amgen Incorporation in Bengaluru.
 India’s third largest drug maker Lupin Limited plans to file its first biosimilar
Etanercept for approval in Japan, world’s second largest drug market, in 2017.
 Rubicon Research Pvt Ltd, a contract research and manufacturing services firm, is in
advanced talks with Everstone Capital and a few high-net-worth Individuals (HNI) to
 raise up to Rs 240 crore (US$ 35.79 million), which will be used to increase the
company’s manufacturing capabilities.
 Lupin Ltd plans to acquire a portfolio of 21 generic brands from Japan-based Shionogi
& Co Ltd for Rs 10.08 billion (US$ 150.3 million), which will help to strengthen its
presence in the world’s second largest pharmaceutical market.
 International Finance Corporation (IFC), the investment arm of the World Bank, plans
to invest upto US$ 75 million in Glenmark, which is looking to raise around US$ 200
million for expansion and the launch of several new products in India and other
emerging markets over the next three years.
 Cipla Limited plans to invest around Rs 600 crore (US$ 89.47 million) to set up a
biosimilar manufacturing facility in South Africa for making affordable cancer drugs
and growing its presence in the market.
 Rusan Pharma, a firm which specialises in de-addiction and pain management products,
plans to invest Rs 100 crore (US$ 14.91 million) in a R&D centre and a manufacturing
unit in Kandla, located in Kutch District in Gujarat.
 Pink Blue Supply Solutions Pvt. Ltd, a clinical supplies provider, has raised Rs 1.5
crore (US$ 0.22 million) in a seed round of funding from TermSheet.io, a transaction-
focused service provider for start-ups and investors.
 The Medicines Patent Pool (MPP) has signed a licencing agreement with six Indian
drug makers for the generic manufacturing of four antiretrovirals (ARV) and hepatitis
C direct-acting antiviral drug Daclatasvir.
 Dr Reddy's Laboratories, one of the major pharmaceutical companies of India, has
entered into a strategic collaboration agreement with Turkey-based TR-Pharm, to
register and subsequently commercialise three biosimilar products in Turkey.
 Lupin has completed the acquisition of US-based GAVIS Pharmaceuticals in a deal
worth US$ 880 million, which is expected to enhance its product pipeline in
dermatology, controlled substances and high-value speciality products.
 Cipla Ltd, one of the major pharmaceutical and biotechnology companies in India, has
acquired two US-based generic drug makers, InvaGen Pharmaceuticals Inc. and Exelan
Pharmaceuticals Inc., for US$ 550 million, which is expected to strengthen Cipla's US
business.
 Emcure Pharmaceuticals has acquired Canada's International Pharmaceutical Generics
Ltd and its marketing arm Marcan Pharmaceuticals in order to boost its global
expansion drive.
 Cipla announced the acquisition of two US-based companies, InvaGen Pharmaceuticals
Inc. and Exelan Pharmaceuticals Inc., for US$550 million.
 Glaxosmithkline Pharmaceuticals has started work on its largest greenfield tablet
manufacturing facility in Vemgal in Kolar district, Karnataka, with an estimated
investment of Rs 1,000 crore (US$ 149.11 million).
 Lupin has acquired two US based pharmaceutical firms, Gavis Pharmaceuticals LLC
and Novel Laboratories Inc, in a deal worth at US$ 880 million.
 Several online pharmacy retailers like PharmEasy, Netmeds, Orbimed, are attracting
investments from several investors, due to double digit growth in the Rs 97,000 crore (
US$ 14.46 billion) Indian pharmacy market.
  StelisBiopharma announced the breakthrough construction of its customised, multi-
product, biopharmaceutical manufacturing facility at Bio-Xcell Biotechnology Park in
Nusajaya, Johor, Malaysia's park and ecosystem for industrial and healthcare
biotechnology at a total project investment amount of US$ 60 million.
 Strides Arcolab entered into a licensing agreement with US-based Gilead Sciences Inc
to manufacture and distribute the latter's cost-efficient TenofovirAlafenamide (TAF)
product to treat HIV patients in developing countries. The licence to manufacture
Gilead's low-cost drug extends to 112 countries.

Government Initiatives

The Government of India unveiled 'Pharma Vision 2020' aimed at making India a global leader
in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost
investments. Further, the government introduced mechanisms such as the Drug Price Control
Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability
and availability of medicines.
Mr Ananth Kumar, Union Minister of Chemicals and Petrochemicals, has announced setting
up of chemical hubs across the country, early environment clearances in existing clusters,
adequate infrastructure, and establishment of a Central Institute of Chemical Engineering and
Technology.
Some of the major initiatives taken by the government to promote the pharmaceutical sector in
India are as follows:

 The Government of India plans to set up around eight mini drug-testing laboratories
across major ports and airports in the country, which is expected to improve the drug
regulatory system and infrastructure facilities by monitoring the standards of imported
and exported drugs and reduce the overall time spent on quality assessment.
 India is expected to rank among the top five global pharmaceutical innovation hubs by
2020, based on Government of India's decision to allow 50 per cent public funding in
the pharmaceuticals sector through its Public Private Partnership (PPP) model.#
 Indian Pharmaceutical Association (IPA), the professional association of
pharmaceutical companies in India, plans to prepare data integrity guidelines which
will help to measure and benchmark the quality of Indian companies with global peers.
 The Government of India plans to incentivise bulk drug manufacturers, including both
state-run and private companies, to encourage ‘Make in India’ programme and reduce
dependence on imports of Active Pharmaceutical Ingredients (API), nearly 85 per cent
of which come from China.
 The Department of Pharmaceuticals has set up an inter-ministerial co-ordination
committee, which would periodically review, coordinate and facilitate the resolution of
the issues and constraints faced by the Indian pharmaceutical companies.
 The Department of Pharmaceuticals has planned to launch a venture capital fund of Rs
1,000 crore (US$ 149.11 million) to support start-ups in the research and development
in the pharmaceutical and biotech industry.
Road Ahead

The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, driven
by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among
others.
Going forward, better growth in domestic sales would also depend on the ability of companies
to align their product portfolio towards chronic therapies for diseases such as such as
cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
The Indian government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and is
expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health
programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical
companies.

Porter's Five Forces For Indian Pharma Industry

The Threat of New Entrant:

The threat of new entrant is low to moderate based on the following factors:

It has become very important for the pharmaceutical companies to focus on research and
development to sustain their position in market. The cost associated with research and
development is very high. Also, there are the stringent government regulations for approval of
new drugs which act as high barrier. Besides this, various other challenges such as drawing up
appropriate distribution strategies, selecting the right products, anticipating competition among
others are limiting the entry of new barrier in market.

Many pharmaceutical companies are progressing in the market by shifting from traditional
business approach to emerging new business approach. The new business technique includes
contract research (drug discovery and clinical trials), contract manufacturing and co-marketing
alliance. Many new companies to enter the market without burden of costly tasks such as
research and development, clinical trials and manufacturing of drugs. Moreover, patent expiry
is one of the reasons which is offering opportunities for lower cost generic manufacturer in
terms of greater market access. Additionally, the government has increased their focus on
healthcare cost cutting. It is creating pressure on the authority to allow early introduction of
low-cost drugs in the market. This, in turn, poses a big opportunity for pharmaceutical
companies with approved facility and sound knowledge of regulatory issues. Therefore, all
these factors are responsible for the high threat from a new entrant.
The Threat of Substitutes:

The threat of substitute ranges from moderate to high. The demand for generic drugs compared
to branded drug has increased because of cost. Generic manufacturers do not incur the high
cost involved in research and development and regulatory activities such as FDA approval and
clinical trials. These are the reasons, they can offer their product at cheaper price. This increases
the threat of substitutes.

Bargaining Power of Buyers:

The buyer's bargaining power is moderate. There are many companies in market providing
similar products. Because of this reason, buyers such as hospital and other healthcare
organization have an option to select. They generally pressurize the pharma companies to keep
prices of the drugs low.

Moreover, pharmaceutical industry has one unique feature that the buyer is different from
influencer who is a doctor. The consumer has no option but to buy drug as prescribed by
physician. Therefore, the bargaining power of patient is very low.

Bargaining Power of Suppliers:

The bargaining power of suppliers in market is low. Pharmaceutical products require various
types of organic chemical. There are a number of chemical suppliers present in the market.
Instead of buying chemicals at the high cost, pharma companies can switch from one company
to other.

The Intensity of The Competitive Rivalry:

Due to increasing demand of high-quality drugs, low-to-moderate entry barrier to the new
entrant, the presence of a number of large and small firm this market is highly competitive.
 COMPANY ANALYSIS

Lupin Pharmaceuticals, Inc. is the U.S. wholly owned subsidiary of Lupin Limited, which is
among the top five pharmaceutical companies in India. Through our sales and marketing
headquarters in Baltimore, MD, Lupin Pharmaceuticals, Inc. is dedicated to delivering high-
quality, branded and generic medications trusted by healthcare professionals and patients
across geographies.

Lupin Limited, headquartered in Mumbai, India, is strongly research focused. It has a program
for developing New Chemical Entities. The company has a state-of-the-art R&D center in Pune
and is a leading global player in Anti-TB, Cephalosporins (anti-infectives) and Cardiovascular
drugs (ACE-inhibitors and cholesterol reducing agents) and has a notable presence in the areas
of diabetes, anti-inflammatory and respiratory therapy.

We are building on our parent company's strengths of vertical integration in discovery research,
process chemistry, active pharmaceutical ingredient production, formulation development and
regulatory filings. Lupin Pharmaceuticals, Inc. is committed to achieving its vision and mission
of becoming an innovation led transnational pharmaceutical company.

Vinita Gupta, CEO of Lupin Pharmaceuticals, Inc. says "founded on the strengths of our parent
company Lupin Limited, Lupin Pharmaceuticals, Inc. intends to bring a portfolio of generics
as well as branded products to the US market."

For the financial year ended 31st March, 2018, Lupin's Consolidated sales and Net profits were
at Rs. 155,598 million (USD 2.41 billion) and Rs. 2,513 million (USD 39 million) respectively.

PRODUCTS
Generics

Lupin Pharmaceuticals, Inc. entered the U.S. generic pharmaceutical market in 2003 with the
ANDA approval for Cefuroxime Axetil Tablets. Since then it have received more than 75 FDA
approvals and have become one of the fastest growing pharmaceutical companies in the US.
The consistent track record of growth is a result of a valuable pipeline, solid customer
relationships, and flawless execution.
The company is vertically integrated, from process development of the API to the submission
of dossiers for finished dosages. This provides control over the supply chain and the ability to
offer quality products at the right time and at competitive prices. The integrated manufacturing
capability provides a portfolio of the highest quality generic products.
Expanding the product portfolio, Lupin Pharmaceuticals, Inc. is geared to file 20 or more
ANDA's per year in some of the following areas:

 1Oral and injectable cephalosporins;

 Cardiovascular;
 Controlled release ANDA's;
 Paragraph IV's.

Lupin operates a globally integrated network of 11 manufacturing facilities. The world class
facilities are built to manufacture and deliver a wide range of finished products to the US
market. All facilities are in constant compliance with quality, safety, environment standards as
laid down by governments and leading regulators such as the US FDA.

Specialty

A commitment To Caring For Kids

Lupin Pharmaceuticals, Inc. is committed to developing a branded pharmaceutical presence
for paediatric practice in the US market. It is committed in identifying, developing and
marketing prescription drugs for children of all ages. Lupin has created a dedicated national
sales force to call upon paediatricians.

Lupin Pharmaceuticals, Inc., offers Suprax®, an important anti-infective product in paediatric

and other physician practices within the United States. Suprax® is now available in tablets and
suspension formulations. Lupin Pharmaceuticals, Inc., has an exclusive license in the United
States to use the Suprax® trademark.

The company also plan to expand the pediatric products to help meet needs of children. The
focus is on in-house product development with our proprietary oral controlled release and taste
masking platforms. Lupin Pharmaceuticals, Inc. is also open to marketing alliances, and to
licensing/acquisitions.

API
 Lupin is recognized as a leading manufacturer of cephalosporin
API’s, with FDA approval to manufacture complex oral and
injectable cephalosporins.

 Lupin is fast gaining share in the cardiovascular segment

manufacturing a wide range of ACE-inhibitors and cholesterol
reducing agents.
 Lupin’s capabilities in sterile processing, synthetic process
development and fermentation skills coupled with its intellectual
property strengths, puts the company in a very strong position to
offer a diverse portfolio of niche API’s to its customers.
Type Public

Traded as
BSE: 500257
NSE: LUPIN

Industry
Pharmaceuticals/OTC/FMCG

Founder Desh Bandhu Gupta

Founded 1968

Headquarters Mumbai, Maharashtra, India

Key people
Vinita D. Gupta, Chief Executive Officer
Nilesh Gupta, Managing director
Dr Kamal Sharma, Vice Chairman

Products
Pharmaceuticals, branded and generic drugs

Revenue $2.55 billion USD (2016-2017)

Net Income $721 million USD (2016-2017)

Number of employees 50000

Subsidiaries Lupin Pharmaceuticals, Inc.

Kyowa Pharmaceutical Industry Co. Ltd,
I’rom Pharmaceutical Co. Ltd.,
Pharma Dynamics,
Multicare Pharmaceuticals,
Generic Health Pte. Ltd.
Hormosan Pharma GmbH Nanomi
B.V., Laboratorios Grin, Medquimica,
Biocom Russia, Temmer Germany
 Website www.lupin.com

SWOT analysis of Lupin Limited

Today, Lupin has grown to become the seventh largest company by market capitalization and
is ranked at number 10 in terms of revenue from generic drugs. The company has a fast-
growing presence in the USA and is ranked fifth in the list of generic pharmaceutical brands in
the country.

Lupin Limited started gaining importance in the pharmaceutical industry after the discovery of
tuberculosis drugs and slowly went on to become the world leader in TB drugs.Today the
company has drugs in cardiovascular diseases, diabetes, asthma, pediatrics, geriatrics, NSAID
and anti-infection drugs.

Strengths in the SWOT analysis of Lupin Limited :

Strengths are defined as what each business does best in its operations which can give it an
upper hand over its competitors. The following are the strengths of Lupin Limited :

 Market leadership in various drug categories:

The company is a market leader in anti-tuberculosis drugs and cephalosporin. The company
also has a significant presence in Central Nervous System (CNS), Oncology, Cardiovascular,
diabetes, asthma, pediatrics, geriatrics, NSAID, and anti-Infectives.

 Market leadership in various markets:

The company is ranked at number 2 in the pharma industry in India. It is the 4th largest
company in the USA in terms of prescriptions with a market share of 5.3 % and the 6 th largest
pharma company selling generic drugs in Japan.

 Focus on strategy:

Lupin Limited was set up with the vision of making drugs affordable to all so that world would
be free of diseases. The company continues to be focused on its vision and could churn out a
pipeline of healthy drugs accessible to all.

 Series of successful acquisitions:

Lupin made a series of acquisitions the past financial year out of which the most significant
one was that of the branded product portfolio from Shionogi in Japan which gave them
complete control of more than 21 long-listed drugs in Central Nervous System (CNS),
Oncology, Cardiovascular and Anti-Infectives. Other recent acquisitions include Gavis,
Medquimica and Temmler have also helped the company widen their portfolio of drugs.

Weaknesses in the SWOT analysis of Lupin Limited :

Weaknesses are used to refer to areas where the business or the brand needs
improvement. Some of the key weaknesses of Lupin are:

 Higher dependence on foreign markets:

Lupin Limited looks up to the US for almost 84 percent of its revenue and in the
country, there is a sharp decline in same of generic drugs which is the key ingredient of
Lupins portfolio.

 Adherence to regulation:

The Company is in a sector which is subject to a very strict regulatory framework with
the result that adhering to this can be a costly and challenging affair. There is also an
added risk of dealing with prohibited compositions.

 Labour overheads:

The pharma business is a research-intensive domain and therefore labor intensive. The
core team comprises a group of highly qualified professionals and managing them is no
easy task.

 Excessive importance to low growth segments:

Most of the drugs of Lupin are in low-growth areas such as Central Nervous System
(CNS), Cardiovascular and Anti-Infectives. The company was also into TB research
where the market has slowed down as many countries have almost eradicated the
disease through mass vaccination drives.

Opportunities in the SWOT analysis of Lupin Limited :

Opportunities refer to those avenues in the environment that surrounds the business on which
it can capitalize to increase its returns. Some of the opportunities include:

 Policy reform:
Donald Trump has put the Patient Protection and Affordable Care Act (ACA Act) under
review and experts believe that the new set of reforms will favor pharma companies
dealing with generic drugs. If this speculation is true, it could open up a whole new
gamut of avenues for Lupin whose prime market is the USA.

 Growing demand for biosimilars:

There will be a growth spurt for biosimilars which will catapult the focus from smaller
molecules to biosimilars. This is an opportunity that can be used in the company’s favor
if adequate research is undertaken.

 Patient-driven health care:

Technology trends indicating that medical treatment will start being more patient-
centric with the growth in demand for wearable biometric devices and telemedicine.
This will empower the patients with the right information and this, in turn, will increase
their engagement levels as well as their role in the treatment process prescribed by the
doctor.

Threats in the SWOT analysis of Lupin Limited :

Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:

 Competition:

With lowered barriers to entry, the pharma industry is growing by leaps and bounds and the
company faces stiff competition from Ranbaxy and Cipla in the Indian market.

 Change of government policy:

With every new government, regulatory framework and policies change, with the result that
pharma companies have to readjust their research norms as well as drug compositions. This
creates a lot of monetary challenges.

Announcement Date Ex Dividend Date Dividend (%) Dividend Type

15-May-2019 29-Jul-2019 250 Final

15-May-2018 30-Jul-2018 250 Final

24-May-2017 24-Jul-2017 375 Final

 19-May-2016 25-Jul-2016 375 Final

13-May-2015 14-Jul-2015 375 Final

03-May-2014 21-Jul-2014 150 Final

03-Feb-2014 13-Feb-2014 150 Interim

DIVIDENT PAYMENTS

FINANCIALS

BALANCE SHEET
PROFIT AND LOSS ACCOUNT
CASH FLOW OF LUPIN LTD
TECHNICAL ANALYSIS
Date Close 3 day moving average exponential
30-07-2018 null
06-08-2018 809.45 809.45
13-08-2018 881.25 845.350006 845.35
20-08-2018 907.2 865.9666747 876.275006
27-08-2018 931.45 906.6333413 903.862509
03-09-2018 959.4 932.6833493 931.6312665
10-09-2018 968.75 953.200012 950.1906333
17-09-2018 890.25 939.4666747 920.2203166
24-09-2018 900.95 919.9833373 910.5851643
01-10-2018 838.75 876.650004 874.6675822
08-10-2018 846.25 861.9833373 860.4587911
15-10-2018 880.25 855.0833333 870.3543955
22-10-2018 855.15 860.550008 862.7522098
29-10-2018 849.9 861.7666827 856.3261169
05-11-2018 854.9 853.3166907 855.6130704
12-11-2018 864.7 856.50002 860.1565412
19-11-2018 850.7 856.7666827 855.4282766
26-11-2018 886.75 867.3833413 871.0891383
03-12-2018 841.3 859.5833333 856.1945632
10-12-2018 843.85 857.299988 850.0222696
17-12-2018 858.45 847.8666587 854.2361408
24-12-2018 840.3 847.5333253 847.2680644
31-12-2018 828.9 842.550008 838.0840442
07-01-2019 839.35 836.1833293 838.7170101
14-01-2019 862.3 843.5166627 850.508499
21-01-2019 865.05 855.5666507 857.7792435
28-01-2019 883.1 870.149984 870.4396098
04-02-2019 830.75 859.6333213 850.5948049
11-02-2019 774.75 829.5333253 812.6724024
18-02-2019 777.7 794.400004 795.1862072
25-02-2019 786.6 779.6833293 790.8930916
04-03-2019 779.15 781.150004 785.0215578
11-03-2019 785.15 783.6333413 785.0857909
18-03-2019 743.2 769.1666867 764.1429015
25-03-2019 739.6 755.9833373 751.8714387
01-04-2019 788.35 757.049988 770.1107074
08-04-2019 832.75 786.899984 801.4303537
15-04-2019 835.8 818.9666547 818.6151708
22-04-2019 868.35 845.6333213 843.4825734
29-04-2019 870.8 858.3166507 857.1412807
06-05-2019 835.9 858.349996 846.5206524
13-05-2019 753.15 819.950012 799.8353382
20-05-2019 763.3 784.1166787 781.5676631
27-05-2019 745.55 754 763.5588255
03-06-2019 730.2 746.349996 746.8794188
10-06-2019 723.2 732.9833373 735.0397154
17-06-2019 712.8 722.0666707 723.9198517
24-06-2019 754.75 730.25 739.3349258
01-07-2019 735.7 734.4166667 737.5174689
08-07-2019 761.75 750.7333373 749.6337345
15-07-2019 747.35 748.2666627 748.4918552
22-07-2019 777.3 762.1333213 762.8959216
29-07-2019 767.3 763.9833173 765.0979548
05-08-2019 760.2 768.2666627 762.6489834
 0
100
200
300
400
500
600
800
900
0
200
400
600
800

700
1000
1000
Date Date 1200
06-08-2018 06-08-2018
20-08-2018 20-08-2018
03-09-2018 03-09-2018
17-09-2018 17-09-2018
01-10-2018 01-10-2018
15-10-2018 15-10-2018

maintaining stability.
29-10-2018 29-10-2018
12-11-2018 12-11-2018
26-11-2018 26-11-2018
10-12-2018 10-12-2018
24-12-2018 24-12-2018
07-01-2019 07-01-2019
21-01-2019 21-01-2019
04-02-2019 04-02-2019

exponential
18-02-2019 18-02-2019
04-03-2019 04-03-2019
18-03-2019 18-03-2019
3 day moving average

01-04-2019 01-04-2019
15-04-2019 15-04-2019
29-04-2019 29-04-2019
13-05-2019 13-05-2019
27-05-2019 27-05-2019
10-06-2019 10-06-2019
24-06-2019 24-06-2019

noticed that it is similar to that of simple moving average.

08-07-2019 08-07-2019
22-07-2019 22-07-2019
The stock price does not show any huge up or down variations, thereby

The exponential graph also does not show any major variations and can be