Pharmaceutical company Lupin has announced that it will be transferring its over-the-counter (OTC) consumer healthcare business to a wholly-owned subsidiary, valued at between ₹550 crore and ₹650 crore. The company reported strong financial results for the third quarter, with a profit after tax of ₹858 crore, a 38.8% increase from the previous year, and sales of ₹5,618 crore, a 10.6% rise. The company’s OTC business revenue was ₹148 crore in FY24, accounting for approximately 1% of its standalone turnover.
Lupin’s Managing Director, Nilesh Gupta, attributed the company’s strong performance to its continued growth in the US market, driven by the scaling up of new products and robust results from the India and EMEA regions. The company has also secured six abbreviated new drug approvals (ANDA) in the US and launched two new products during the quarter.
The company plans to finalize the Business Transfer Agreement (BTA) by April 30, 2025, or as mutually agreed, and complete the transaction by June 30, 2025. With the OTC business separate from its core prescription drugs, Lupin can focus on its strengths in the prescription drug market. The company’s decision to transfer the OTC business is intended to position it for further growth in the rapidly expanding OTC market.
Lupin’s North American sales for the quarter reached ₹2,121 crore, a 12.3% increase, and accounted for 38% of its global sales. The company’s presence in the US market has strengthened with 163 generic products launched.