Lupin, a leading pharmaceutical company, has created a new subsidiary called LupinLife Consumer Healthcare Ltd to house its consumer healthcare business. This move is in line with a growing trend among pharmaceutical companies, both in India and globally, to separate their consumer health operations from their prescription drug businesses. The goal is to better target the rapidly expanding self-care market in India. Anil Kaushal will lead the new subsidiary as CEO, bringing strategic focus and agility to Lupin’s consumer health portfolio.
The separation of the consumer healthcare business from the prescription drug business allows for more targeted investments and a dedicated approach to building strong consumer brands in the over-the-counter (OTC) space. Lupin’s OTC consumer healthcare business contributed ₹148 crore to the company’s total standalone revenue of ₹14,666 crore in FY24. The new subsidiary has a strong portfolio of scientifically formulated brands, including Softovac, Beplex Forte, Corcium, and Aptivate, which are positioned to leverage the rising demand for preventive healthcare and wellness in India.
The pharmaceutical sector is witnessing a trend of spinning off consumer health units, as companies recognize the need for separate business models to cater to prescription drugs and OTC healthcare products. This allows companies to streamline operations and adopt more FMCG-style promotion strategies tailored for consumer health products, while maintaining focus on their traditional pharma businesses. Companies such as Cipla, Glenmark, Mankind Pharma, and Sanofi have already adopted similar strategies.
The formation of LupinLife Consumer Healthcare Ltd reflects the company’s long-term vision of adapting to evolving healthcare needs and market dynamics in India. With this move, Lupin joins a broader industry shift that seeks to unlock value and accelerate growth in two distinct but complementary healthcare markets – prescription pharmaceuticals and consumer wellness products. The company’s move is expected to enable it to sharpen its focus on prescription drugs while allowing the OTC arm to thrive independently in a fast-growing and competitive consumer healthcare market.