Buy On Dips

Lupin, a Mumbai-based pharmaceutical major, manufactures and sells generic and branded formulations and active pharmaceutical ingredients (APIs) in markets across the world. It has gained recognition as the world’s largest manufacturer of tuberculosis drugs. The company has a significant presence in the US branded generics market and is one of the leading players in cephalosporin, cardiovascular, diabetology, asthma and NSAID therapy. Sectoral outlook The domestic pharma market has grown at a compounded annual growth rate (CAGR) of 13.5 per cent over the last five years. Indian pharma players are steadily moving up the value chain to niche and branded products. Growth drivers. According to industry experts, the domestic pharma market is expected to grow to US$55 billion by 2020. A significant part of the additional growth is expected to come from the fast-growing chronic or lifestyle segment. Generics are expected to emerge as the preferred play. According to a report from Enam Securities, domestic growth will be driven by deeper penetration into semi-urban and rural markets, and growing affordability. Research and development alliances with multinational companies will act as an additional booster for the sector. Moreover, with drugs having cumulative revenue of US$ 80 billion set to lose their patents over the next few years, a huge opportunity is set to emerge for generic players. Concerns. Rising FDA (Food & Drug Administration, the US regulator) surveillance will put increasing compliance-related pressures on Indian companies, with the possibility that the latter might receive more warning letters and penalties. The number of such incidents has increased significantly in the past couple of years. Increasing competition from smaller domestic firms is depressing the margins of bigger player