CapitalMarket.com - Lupin gains after settlement agreement on GLUMETZA tablets
Hot Pursuit Thursday, February 23, 2012 13:41 Hrs IST

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Lupin gains after settlement agreement on GLUMETZA tablets

Lupin rose 1.61% to Rs 471 at 13:41 IST on BSE after the company and its subsidiary has entered into a settlement agreement with Santarus Inc and Depomed Inc to resolve pending patent litigation involving GLUMETZA extended release metformin tablets.

The company made this announcement after market hours on Wednesday, 22 February 2012.

Meanwhile, the BSE Sensex was down 27.24 points, or 0.15% to 18,118.01.

On BSE, 65,000 shares were traded in the counter as against an average daily volume of 79,596 shares in the past one quarter.

The stock hit a high of Rs 474 and a low of Rs 461 so far during the day. The stock had hit a 52-week high of Rs 509.50 on 15 February 2012. The stock had hit a 52-week low of Rs 363 on 25 February 2011.

The stock had underperformed the market over the past one month till 22 February 2012, rising 5.3% compared with the Sensex's 8.4% gain. The scrip had also underperformed the market in past one quarter, rising 3.6% as against Sensex's 12.95% gain.

The large-cap pharma firm has an equity capital of Rs 89.32 crore. Face value per share is Rs 2.

The settlement agreement grants Lupin the right to begin selling a generic version of GLUMETZA on 1 February 2016, or earlier under certain circumstances, Lupin said in a statement. The settlement agreement is subject to review by the US Department of Justice and the Federal Trade Commission, as well as entry by the US District Court for the Northern District of California of an order dismissing the litigation, Lupin said in a statement.

GLUMETZA extended release metformin tablets, 1000 milligram (mg) and 500 mg had annual US sales of approximately $71 million, for the twelve months ended December 2011, as per IMS Health data. Lupin had earlier received the tentative approval for generic GLUMETZA (Metformin Hydrochloride Extended Release Tablets) 1000 mg and 500 mg from the US Food and Drugs Administration (USFDA) in January 2012. Lupin believes it is the first applicant to file an abbreviated new drug application (ANDA) for GLUMETZA 1000 mg & 500 mg strengths and as such is entitled to 180 days of marketing exclusivity, the company said in a statement.

On a consolidated basis, Lupin's net profit rose 4.9% to Rs 235.06 crore on 21.9% growth in net sales to Rs 1791.70 crore in Q3 December 2011 over Q3 December 2010.

Lupin makes a wide range of generic and branded formulations and APIs for the developed and developing markets. The company significant presence in the Cardiovascular, Diabetology, Asthma, Pediatrics, CNS, GI, Anti-Infectives and NSAID space in addition to holding global leadership positions in the Anti-TB and Cephalosporin segments.

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