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Informist, Wednesday, Aug. 6, 2025

 

--Lupin: Anticipate R&D spend to be 7.5-8.5% of sales in FY26 
--CONTEXT: Comments by Lupin's mgmt in post-earnings concall with analysts 
--Lupin: May transfer tech, intellectual property to US in case of tariffs 

--Lupin:To do contract mfg in India after moving intellectual property to US 

By Gopika Balasubramanium 

 

MUMBAI – Lupin Ltd. plans to increase prices of its products sold in the US and transfer of intellectual property of high-value products to the US and do contract manufacturing in India to offset the impact of proposed US tariffs, the company's top executives told analysts at a post-earnings conference call Wednesday. Lupin also has the ability to transfer products to two sites in the US in New Jersey and Coral Springs, the management indicated.

 

The combination of these measures is expected to mitigate the effect of a "good percentage" of the impact of tariffs, the management said. The company also said a 10-15% tariff should be manageable in any case. "I mean, the question is, is it 25% or the 150-200% kind of numbers that have been floated," Vinita Gupta, chief executive officer, said.

 

In the June quarter, the US accounted for 39% of Lupin's total sales. The company's revenue from the US was $282 million, up 22% on year in constant currency terms. In rupee terms, the sales from the company's biggest market were INR 24.04 billion, up 24%.

 

Lupin guided its research and development spend to be between 7.5-8.5% of sales in 2025-26 (Apr-Mar). In the June quarter, the company spent INR 4.84 billion on research and development, accounting for 7.9% of its total sales. The company also reaffirmed its guidance for earnings before interest, tax, depreciation, and amortisation margin for FY26 at 24-25%. For Apr-Jun, the company's EBITDA margin, excluding forex and other income, was 26.6%.

 

Lupin said its injectables products will be the growth drivers from Oct-Mar, having received approvals for significant products such as Glucagon and Liraglutide. "So the injectables start becoming a growth driver for us at the, you know, second half of this fiscal year, building into fiscal year 2027 (2026-27)," Gupta said. Further, the company said it launched Glucagon in the US on Tuesday and expects to launch Liraglutide in October.   

 

Lupin also sees biosimilars as a promising portfolio, especially in terms of access to the US market. The company expects its biosimilar Pegfilgrastim to get approval from the US Food and Drug Administration this financial year. It also hopes to file and get approval from the US FDA for Pegfilgrastim on-body injector by FY27 or FY28. It expects Pegfilgrastim on-body injector and Ranibizumab to potentially come to market in FY27-FY28.  

 

Late Tuesday, Lupin reported a consolidated net profit of INR 12.19 billion on revenue of INR 62.68 billion. Wednesday, shares of the company ended at INR 1,851.80 on the National Stock Exchange, down 0.7% from the previous close.  End 

 

Edited by Saji George Titus

 

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