Although DRL is on an improvised path, where its biosymelor segments and bright spots in China as its business, the possibilities for Lupine are serious.
In the fourth quarter performance, stocks of pharma major Dr Reddy's Labs (DRL) and Lupine were seen steadily. Both companies are performing well in their major American and Indian markets and there is no possibility of immediate recovery. However, Lupine investors have more reasons to worry than the DRL.
In 2015, DRL stock is trading at around half of its record high hit. In recent quarters, DRL is dividing non-core assets and cutting costs and reducing expenditure on R & D. It rebuilt strategies, made changes in leadership team and optimized its global cost structure.
The company is continuously getting a lead in its segments like China and BioSimilar from its forts. The company expects to launch 30 products in the US in fiscal year 2015. Despite the sub-trend January-March performance, 40 percent of stock-tracking analysts have called 'buy' on the stock, Bloomberg data has revealed.
In contrast, Lupine stock has corrected its record high level by one third in 2015. More than 45 percent of stock tracking analysts have recommended 'sell' on this. Observations have been received from USFDA in its four manufacturing facilities - two of them received warning letters.
The resolution of regulatory issues will determine the speed of Lupine's drug launch in the US. Due to underperformance and pricing pressure in the Japanese market, the company's entry in Japan has not been good.
Investors are concerned about Lupine
Acquisition of Givis - The biggest purchase by the Indian pharma company - was not performed as expected.
Last year, the company made a one-stop reduction to Gevis. One year after the death of his founder, Lupine's vice president went to a non-executive advisory role last October. The company has appointed a new CFO six months after the last one month's leave.
Lupine is hoping to launch 20 products in FY20. Its main focus area remains a forest in complex generics, special products and biosimilar - an area where biocon and DRL have already met with success. Cost rationalization and resource allocation is also a priority area.
Looking at the heads of industry, Lupine has more risks for his income due to the regulatory clampdown and the speed of drug approval.
In the fourth quarter performance, stocks of pharma major Dr Reddy's Labs (DRL) and Lupine were seen steadily. Both companies are performing well in their major American and Indian markets and there is no possibility of immediate recovery. However, Lupine investors have more reasons to worry than the DRL.
In 2015, DRL stock is trading at around half of its record high hit. In recent quarters, DRL is dividing non-core assets and cutting costs and reducing expenditure on R & D. It rebuilt strategies, made changes in leadership team and optimized its global cost structure.
The company is continuously getting a lead in its segments like China and BioSimilar from its forts. The company expects to launch 30 products in the US in fiscal year 2015. Despite the sub-trend January-March performance, 40 percent of stock-tracking analysts have called 'buy' on the stock, Bloomberg data has revealed.
In contrast, Lupine stock has corrected its record high level by one third in 2015. More than 45 percent of stock tracking analysts have recommended 'sell' on this. Observations have been received from USFDA in its four manufacturing facilities - two of them received warning letters.
The resolution of regulatory issues will determine the speed of Lupine's drug launch in the US. Due to underperformance and pricing pressure in the Japanese market, the company's entry in Japan has not been good.
Investors are concerned about Lupine
Acquisition of Givis - The biggest purchase by the Indian pharma company - was not performed as expected.
Last year, the company made a one-stop reduction to Gevis. One year after the death of his founder, Lupine's vice president went to a non-executive advisory role last October. The company has appointed a new CFO six months after the last one month's leave.
Lupine is hoping to launch 20 products in FY20. Its main focus area remains a forest in complex generics, special products and biosimilar - an area where biocon and DRL have already met with success. Cost rationalization and resource allocation is also a priority area.
Looking at the heads of industry, Lupine has more risks for his income due to the regulatory clampdown and the speed of drug approval.
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