- 16 Jul 2024
- ICICI Securities
LUPIN DIVESTED ITS U.S. COMMERCIAL WOMEN’S HEALTH SPECIALTY BUSINESS
LUPIN - 2105 Change: 85.80 (4.25 %)News: Lupin divested its U.S. Commercial Women’s Health Specialty Business to Evofem Biosciences a U.S. biopharmaceutical company focused exclusively on Women’s Health.Under the terms of the deal, Lupin can receive a potential total consideration of up to USD 84 million(Rs 702 crore) based on future contingent milestones. Lupin’s U.S. Commercial Women’s Health Specialty Business is primarily focused on commercializing SOLOSEC(secnidazole) 2g oral granules used for the treatment of bacterial vaginosis (BV) and trichomoniasis, two common sexual health infections.
Views: This divestment might not have been financially profitable, but it would enable the company to focus on more remunerative US specialty business in therapeutic areas of respiratory and neurological diseases. Lupin paid ~USD 150 million in 2017 for Solosec acquisition. The product couldn’t garner the expected potential and had a tough time post Covid 19. Lupin had taken ~Rs 700 crore write-off in 2022.
Impact: Neutral