Lupin shares hit 52-week high on plans to transfer two APIs, select R&D operations to LMSL

Shares of pharmaceutical major Lupin were in focus on Tuesday, a day after the company said that it plans to enter into a business transfer agreement with Lupin Manufacturing Solutions Limited (LMSL), its wholly-owned subsidiary, to carve out two active pharmaceutical ingredients (API) manufacturing sites at Dabhasa and Visakhapatnam and select R&D operations including fermentation at Lupin Research Park, Pune.

The share price of the company surged as much as 4.08% to hit a 52-week high of ₹1,174.00 in early session. During the session, the share price of the company opened higher at ₹1,127.90, as against the closing price of the previous session at ₹1,135. At present, the share price of the company is trading 88.4% higher than the 52-week low of ₹623.2, which the company touched on September 19 last year.

“The Company is proposing to transfer part of its API business operated through Dabhasa and Visakhapatnam manufacturing sites and select R&D operations, including fermentation, at Lupin Research Park, Pune, along with all related assets and liabilities including but not limited to movable assets, products, employees, contracts (including lease deeds), intellectual property, licenses, permits, consents, approvals, transferable tax credits, trade receivables, inventories, trade payables and insurance policies (collectively ‘the undertaking’) to LMSL, wholly owned subsidiary of the Company,” the company says in a regulatory filing.

According to the regulatory filing of the pharmaceutical major, the company expects around ₹750-₹800 crore from the slump sale. “The slump sale shall be subject to customary satisfactory completion of conditions precedent (including necessary approvals required for the slump sale) and in accordance with the other provisions of the BTA. Completion of the sale is expected to be completed by December 31, 2023,” says Lupin.

“Consideration expected to be received is ₹ 7500 - ₹ 8500 million, subject to movement in working capital and other items in the intervening period up to completion,” it adds.

In FY23, the drugmaker clocked a net profit of ₹430 crore as compared to a loss of ₹1,528 crore. The company’s consolidated revenue during the year-under-revenue stood at ₹16,641 crore as against ₹16,405 crore in the same period the previous year.

Last week, the drugmaker entered into a partnership with Mark Cuban Cost Plus Drug Company and COPD Foundation to expand access to Tiotropium Bromide Inhalation Powder, 18 mcg/capsule, to COPD patients in the US.

Tiotropium Bromide Inhalation Powder, 18 mcg/capsule, to COPD patients in the US. Lupin’s Tiotropium Bromide Inhalation Powder, 18 mcg/capsule, is currently the only generic product available that is therapeutically equivalent to Spiriva® HandiHaler® (Tiotropium Bromide Inhalation Powder), 18 mcg/capsule by Boehringer Ingelheim Pharmaceuticals, Inc.