Lupin: Likely to benefit from Japan’s crisis

Lupin: Likely to benefit from Japan's crisis
Japanese subsidiary Kyowa Pharma to see increased sales of anti-
infective and CNS drugs

In 2007, Lupin acquired Japanese pharma company Kyowa Pharma, which
came with a portfolio of over 200 brands. The company ranks seventh in
the generic segment in Japan and enjoys a leadership position in
neurology, with over 95 products covering 1,297 hospitals in Japan.
Pharma analysts believe the recent crises in Japan could well benefit
Lupin, which has introduced 10 new generics about two years ago in the
world's second-largest pharmaceutical market (Japan).Consequently,
almost 11 percent of the company's total revenue comes from its
Japanese subsidiary. Kyowa plans to launch at least four to five
products every year. According to analysts, Lupin believes Japan is
going to witness a rise in health problems related to gastro-
intestinal, post-traumatic care and infections.
Kyowa, which is a market leader in the central nervous system (CNS)
segment, would benefit in case there is a rise in the demand for such
drugs. Apart from the CNS segment, the company also has a variety of
products in the anti-in-fective and gastro-intestinal categories, too.
In view of the crisis, the company would have to lower the cost of
drugs, but with active pharmaceutical ingredient supply coming from
India, the overall margin would be healthy from the region. Kyowa has
grown nearly 21 per cent in 2009-10 and has a portfolio of over 200
brands marketed through its strong sales team. With Kyowa based in
Sanda, southern Japan, the facility as well as the 355 personnel staff
has not been unaffected by the natural calamity. But the opportunity
in Japan is not limited to the crisis alone
According to a research report by Sharekhan, Japan is the second
largest market for pharmaceutical products after the USA and the
generic market is expected to grow at about 9-13 per cent to $8-11
billion. "Given their established presence, Ranbaxy Laboratories and
Lupin are expected to be the major winners who can tap the Japanese
opportunity," the report adds.
Sources:
http://epaper.business-standard.com/bsepaper/svww_zoomart.php?Artname=20110317b_001101008&ileft=11&itop=160&zoomRatio=130&AN=20110317b_001101008

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