Shares of Lupin hit an over four month high of Rs 931 per share on Wednesday, rising 3% from the previous close and extending their 2% gain on the BSE on Tuesday. The stock of pharmaceutical company was trading at its highest level since January 29, 2018.
In past one month, Lupin has outperformed the market by surging 23% as compared to 1.4% rise in the S&P BSE Sensex.
On June 28, Lupin said that it has partnered with Mylan to commercialize Enbrel (Etanercept) biosimilar. Under the terms of the agreement, Lupin will receive an up-front payment of $15 million and potential commercial milestones together with an equal share in net profits of the product.
According to Business Standard
report, Lupin is preparing for the next wave of growth in Japan, which would come from biosimilars and it expects nearly 50% of its Japan sales to come from the speciality business.
“The Japanese government has been pursuing the agenda of promoting generics and has set the target of 80% generic utilisation by FY 2020-21. Incentives will remain until this period and then it will switch to biosimilars. Lupin has thus drawn up a plan to build a biosimilars portfolio. It expects to launch rheumatoid arthritis biosimilar Etanercept during FY19 and has tied up with Nichi-Iko for its distribution,” added report. CLICK HERE TO READ FULL REPORT
Analysts at Dolat Capital expect the re-inspection of plants under warning leeter to happen in early H2FY19E. The brokerage firm believes that with the key exclusivity like gLevythyroxin and gRanexa would take care of FY19E US sales and other business should take care of growth.