Lupin US sales drop 13% sequentially on competition, LOE

Lupin reported US sales of US$317 million in Q2 FY27, down 13% from US$366 million in Q1 FY27, as increased competition and loss of exclusivity affected key products. The US remained Lupin's largest market, contributing 39% of quarterly revenue, while management set out launches, filings and complex-product plans.

Why did Lupin's US sales decline in Q2 FY27?

Lupin said increased competition and loss of exclusivity, or LOE, on key products drove the 13% quarter-on-quarter decline in US sales to US$317 million in Q2 FY27. Seasonal demand and volume growth in selected products partly offset those pressures. The Q2 FY27 result was still 1% above US$314 million reported in Q2 FY26.

The sales trajectory shows that US revenue had increased through most of FY26 before declining in the first half of FY27. Sales rose from US$314 million in Q2 FY26 to US$350 million in Q3 FY26 and US$371 million in Q4 FY26, then eased to US$366 million in Q1 FY27 and US$317 million in Q2 FY27. Lupin's disclosed US sales figures include IP income.

How significant is the US business to Lupin's revenue?

The US was Lupin's largest geographic market in Q2 FY27, generating Rs 3,020.2 crore, or 39% of sales mix. India followed at Rs 2,383.6 crore, or 31%, while other developed markets contributed Rs 1,182.3 crore, emerging markets Rs 890.8 crore and active pharmaceutical ingredients, or API, Rs 308.6 crore.

Lupin's consolidated net sales were Rs 7,785.5 crore in Q2 FY27, up 14.0% from Rs 6,831.4 crore in Q2 FY26 but down 5.3% from Rs 8,217.2 crore in Q1 FY27. Earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding foreign exchange and other income, was Rs 1,957.4 crore, down 20.5% sequentially. Net income, after adjusting for the non-controlling interest stake, was Rs 1,155.3 crore, down 18.4% from the preceding quarter.

What US market positions does Lupin retain?

Lupin retained about 5.0% of US generic total-prescription volume in the quarter ended September 2026 and ranked third in the market, according to IQVIA data cited in its presentation. The company was ranked number one in 61 products and among the top three in 113 products, indicating the breadth of its generic portfolio despite pressure on some individual products.

Lupin reported generic-market shares of about 36% for tiotropium, 16% for mirabegron and 15% for albuterol, based on IQVIA extended units for the September 2026 quarter. Its overall 5.0% market share uses prescription-volume data, which is a different measure from extended units. Lupin also received tentative approval for a novel apixaban oral suspension through the 505(b)(2) regulatory pathway.

How does Lupin plan to address US product pressure?

Lupin plans to launch about 15 US products in FY27, including one 505(b)(2) product, one biosimilar and three injectables. It also plans to file more than 15 abbreviated new drug applications, or ANDAs, during FY27. These plans target new product additions following a quarter in which competition and LOE affected sales of existing products.

The company reported a pipeline of more than 45 injectables and more than 30 inhalation products, supported by 48 full-time employees, including 21 dedicated employees. Management targets more than 100 new product launches, or NPLs, between FY27 and FY32, with complex products contributing more than 70% of revenue from those launches by FY32. It also plans to launch at least six biosimilars by FY32.

Lupin cited Xopenex and NaMuscla in its specialty aspiration and said it is considering mergers and acquisitions and partnerships to expand the portfolio. The presentation also said cost-optimisation initiatives would continue to improve profitability. Neither the presentation nor the quarterly US sales table quantified the expected revenue contribution from the planned FY27 launches.

Can Lupin's research and quality plans support complex products?

Lupin targets 20 complex-product launches in regulated markets by 2028 across inhalation, injectables and ophthalmics. By 2029, management plans to complete six biosimilar filings in regulated markets and launch 10 novel complex pipeline products in India. Its stated complex-generics capabilities cover metered-dose inhalers, dry-powder inhalers, soft-mist inhalers, nasal sprays and nebules.

Research and development expenditure was Rs 618.1 crore in Q2 FY27, equal to 7.9% of sales, compared with Rs 607.7 crore, or 7.4% of sales, in Q1 FY27. Capital expenditure declined to Rs 223 crore, or 2.9% of sales, from Rs 278.6 crore, or 3.4%, over the same comparison. Lupin calculates both ratios using net sales excluding other operating income.

Over the preceding 12 months, Lupin reported successful US Food and Drug Administration inspections with establishment inspection reports received for Nagpur Unit-II, Nagpur Unit-I, Goa, Pithampur Unit-III, Aurangabad, Somerset and Ankleshwar. Pune Biotech received a biologics licence application, while Tarapur, Mandideep Unit-I and Pithampur Unit-II remained listed as remediation sites. Management's stated quality plan includes inspection readiness and participation in the FDA Quality Maturity Management Program.

Conclusion

Lupin's Q2 FY27 US performance combined a 13% sequential decline to US$317 million with continued market scale, as the US supplied 39% of the company's sales mix. Competition and LOE on key products affected the quarter, while the company retained about 5.0% of generic prescription volume and disclosed leading shares in tiotropium, mirabegron and albuterol.

The next disclosed execution markers are the planned approximately 15 US launches and more than 15 ANDA filings in FY27. Management's longer-range targets of more than 100 NPLs between FY27 and FY32, more than 70% of NPL revenue from complex products by FY32, and at least six biosimilar launches by FY32 will indicate the pace of the portfolio shift.