Lupin reports three USFDA approvals in less than a week

The other two being Varenicline tablets (recommended in the treatment of smoking addictions and dry eye disease), and bromfenac ophthalmic solution (used to treat inflammation and pain among patients who have undergone cataract surgery).

Shares of Lupin have rallied over 84% in the last one year. In the first fortnight of 2024, investors in Lupin have seen their wealth go up by nearly 6%.

The company is targetting quarterly sales of $250 million in the next 3-4 years, global chief financial officer Ramesh Swaminathan told CNBC-TV18 in an interview on January 4.

In the financial year ending March 2023, the drug maker reported a revenue of $632 million from the US (out of a total revenue of $2 billion).

In the latest second quarter ended September 2023, for the first time in two years, Lupin crossed $200 million in revenue from North America, which made for 38% of the company's total revenue.

Aside from the new drug approvals, Lupin shares are also cheering the easing stress on the company's profit margin.

Despite being the third largest pharmaceutical company in the US (by prescriptions), increased competition, and rising cost of inputs, had squeezed the profit margin in recent years.

However, the growing belief on the street is that the margin squeeze is now over. In the first half of the current financial year ending March 2024, the company clocked an EBITDA margin of 19% compared to just 9% in the same period last year.

Global investment bank Nomura increased the target price on Lupin share to ₹1,593 from ₹1,290 per share earlier citing better earnings potential.

Earlier, on December 28, the Mumbai-based broking firm upgraded the rating on Lupin to 'buy' with a new target price of ₹1,440.