Lupin first-quarter profit slumps, misses estimates
Drugmaker Lupin Ltd said on Wednesday first quarter profit fell 59 percent, well below analysts' estimates, as regulatory hurdles and pricing pressure in the United States, its biggest overseas market, weighed.
Indian drugmakers have been hit by regulatory sanctions and warnings over quality control at their production sites, hurting sales in the United States. Regulatory scrutiny over drug prices in that region has also dented margins.
Lupin, which specialises in oral contraceptives and drugs to treat diabetes and hypertension, said sales in the United States fell about 27 percent to 16.02 billion rupees, while domestic sales were down 1.8 percent at 9.32 billion rupees.
Profit for the three months ended June fell to 3.58 billion rupees ($56.13 million) from 8.82 billion rupees a year earlier, the drugmaker said.
Analysts on average expected Lupin to post a profit of 4.79 billion rupees, Thomson Reuters data showed.
The results were below expectations as prices of some products such as Lupin's generic diabetes drug fell and as domestic sales took a hit due to the implementation of a nationwide goods and services tax, said Managing Director Nilesh Gupta in a statement.
Lupin's shares were up 2.2 percent as of 0836 GMT in a broader market that was down 0.17 percent.
($1 = 63.7800 Indian rupees)
(Reporting by Vishal Sridhar in Bengaluru; Editing by Biju Dwarakanath)