Lupin Q3 net loss widens to Rs 835 cr

Pharma firm Lupin on Thursday reported widening of its consolidated net loss to Rs 835 crore for the quarter ended December 2019 on account of exceptional items including impairment of Gavis portfolio. The company had posted a net loss of Rs 151.75 crore for the corresponding period of the previous fiscal, Lupin said in a filing to BSE.

Consolidated sales of the company stood at Rs 3,716 crore for the quarter under consideration. It was Rs 3,821.19 crore for the same period a year ago. "There are a lot of one-times in the numbers this quarter. The reported performance was significantly affected by exceptional events, including the impairment of the Gavis portfolio and our divestiture of Kyowa," Lupin MD Nilesh Gupta said.

The resilience of the India branded business, stabilization of the US generic base business and growth in new launches will drive growth for the company, he added. "Quality remains our top-most priority and we are making steady progress on remediation measures across our manufacturing footprint," Gupta said.

On December 17, 2019, Lupin completed the divestiture of its entire stake in Kyowa Pharmaceutical Industry Co Ltd. The transaction resulted in a pre-tax gain of Rs 1,291.1 crore, Lupin said. In view of the changes in the pipeline value of the Gavis portfolio, the company has decided to impair certain intangible assets acquired as part of the Gavis acquisition leading to an exceptional loss of Rs 1,579.8 crore (pre-tax), it added.

Shares of Lupin Ltd ended at Rs 720.50 on BSE, down 0.26 percent.