Lupin made significant gains today on reports that it is preparing to launch a branded pharmaceutical product in the US market.

The scrip of the domestic pharma company spurted 4.3% to Rs 224.25 in mid-afternoon trades on BSE . The scrip was trading near the day's high of Rs 225 at that level. Around 4.3 lakh shares changed hands on the counter on BSE.

The stock has witnessed a sustained rise over the last few trading sessions, in line with a broad surge in second line pharma stocks. Renewed buying has taken over these counters due to their relatively cheap valuations and the respective companies' focus on export.

From Rs 125.30 on 31 March 2003, Lupin has surged 78.9% to the current Rs 224.25. This, notwithstanding the company's weak Q4 ended 31 March 2003 results.

Lupin Saturday announced that it is preparing to launch a branded pharmaceutical product in the US market. The company is planning to launch Cefixime tablets and suspension in the US under the Suprax brand. The company would be selling this brand in the US under an exclusive arrangement.

The product will be launched after receiving the final approval from the US Food and Drug Administration. The company has filed two ANDAs for Ceflxime in the first half of 2002-03. The company will manufacture the API and finished product at its Mandideep plant.

Lupin's Q4 ended 31 March 2003 performance was affected due to a sharp decline in profit margins on account of a surge in raw material prices. Its profit after tax (PAT) fell 58% in Q4 to Rs 5.89 crore (Rs 13.90 crore) on a 20% growth in net sales to Rs 265.59 crore (Rs 220.82 crore).

For FY 2002-03, PAT grew just 6% to Rs 76.68 crore (Rs 72.18 crore) on a 19% growth in sales to Rs 1,030.15 crore (Rs 867.38 crore).

Early last month, Lupin launched Ceff-ER 750 mg tablets, a once-a-day oral dosage form of cephalexin, a drug used in the treatment of day-to-day infections of the respiratory tract, urinary tract and skin and soft tissue. Ceff-ER is the first product in the cephalosporin segment coming out of Lupin's research in NDDS (new drug delivery systems).

The Indian market for oral cephalexin solids is valued at Rs 1.40 billion as per March 2003 ORG data. Dosage convenience is considered a critical factor in ensuring patient compliance to drug prescription. Lupin's once-a-day dosage form will be a big leap over the thrice-a-day dosages currently on offer, which come in 250 mg and 500 mg strengths.