Shares of Lupin trade higher on getting tentative approval for a new drug from USFDA

Lupin has received tentative approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application for Calcium, Magnesium, Potassium, and Sodium Oxybates Oral Solution, 0.5 g/mL, to market a generic equivalent of Xywav Oral Solution, 0.5 g/mL of Jazz Pharmaceuticals Ireland. This product will be manufactured at Lupin’s Somerset facility in the US.

Lupin is exclusive first-to-file and may be eligible to receive a 180-day exclusivity period at product launch. The net product sales for Calcium, Magnesium, Potassium, and Sodium Oxybates Oral Solution (RLD Xywav) were USD 958.4 million for the year ending December 2022 and USD 604.3 million for the first six months of 2023.

Lupin is an innovation-led transnational pharmaceutical company producing, developing and marketing a wide range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) globally.

The stock is trading at a P/E of 55.2 times, an ROCE of 5.73%, and an ROE of 3.33%. The P/E ratio of the industry in which the company operates is 29 times. This means that the stock is currently trading at a higher P/E ratio than the industry average. This could be due to a number of factors, such as the company’s strong growth prospects or its unique competitive advantages.

Lupin is currently trading at Rs 1,174.15, up by 2.35 points or 0.20% from its previous closing of Rs 1,171.80 on the BSE. The scrip opened at Rs 1,189.95 and has touched a high and low of Rs 1,189.95 and Rs 1166.35 respectively. So far 4,246 shares have been traded on the counter.

The BSE group ‘A’ stock of face value of Rs 2 has touched a 52-week high of Rs 1,192.50 and a 52-week low of Rs 628.10. Last one week high and low of the scrip stood at Rs 1,192.50 and Rs 1,138.95 respectively. The current market cap of the company is Rs 53,342.91 crore. The promoters holding in the company stood at 47.06%, while Institutions and Non-Institutions held 44.42% and 8.52% respectively.

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