Lupin India’s third largest pharmaceutical company in terms of market capitalisation produces and develops a wide range of branded and generic formulations and active pharmaceutical ingredients (APIs). It has its presence in US, Europe, Japan among the foreign countries. And for a bigger share in the international market, the company is looking for acquisitions that will help to build a strong portfolio for the company.
Prior to this, the company has acquired Nanomi BV in Netherland on February 03, 2014. By doing so the company has entered into the technology intensive complex injectables space. While on March 27 this year, the company has acquired 100% equity stake in Laboratories Grin, Mexico. This acquisition has helped the company to enter Mexico, one of the fastest growing pharmaceutical markets in the world. Since 2007 Lupin has acquired nine brand and companies, which includes Tokyo based generic injectables manufacturer Irom Pharmaceutical. Lupin has also made a joint venture with Japan’s Yoshindo to focus on clinical development and commercialisation of biosimilar. So from this we can say that the company is looking for expanding its market share by acquiring new companies. This will help the company to increase its product portfolio which in turn will increase its profitability as well.
Looking on the valuation, the scrip of the company is trading at a price to earnings (P/E) of 23.86x, which is low as compared to P/E of industry leaders like Dr Reddy’s Laboratories and Ranbaxy Laboratories.