Lupin?s net profit for the financial year ended March 31, 2011, grew 27% to touch R862.55 crore, compared to R681.63 crore in the previous fiscal. Net sales of the company for the fiscal 2011 stood at R5,707 crore against R4,774 crore in the previous fiscal. Quarterly net profit of Lupin grew by 2.98 % to R227 crore for the quarter ended March 31, 2011 compared to R220.62 crore for the corresponding quarter last fiscal. In an interview with FE’s Soma Das Lupin’s managing director, Kamal K Sharma, talks about the company?s performance.

What would the capex be for the financial year 2011-12? And where would it be put to use?

It would almost be the same as last year, at around R450 crore, exclusive of acquisition of course. A part of the amount would be invested in new therapies, another portion would go into expansion of existing facilities which have exhausted its full capacities and setting up new plants. A third head which would be around 10 to 12% of the sum, would go in efficiency building ? in acquiring better recovery technologies, environmental friendly technologies and other such measures.

Lupin?s subsidiary in Japan, Kyowa Pharmaceuticals, has grown 16% clocking net sales of R621 crore during financial year 2010-11 against R534 crore (FY 2009-10) and contributed 11% to Lupin?s consolidated revenues. You aim to enter into top five generic firms in Japan, what are the revenue targets for the market?

There is a lot of churn happening in the generics market of Japan. We were the seventh largest when we acquired Kyowa (2007), now we are around the 11th largest generic player there. However, our aim and endevour is to grow at a rate double that of average generic market growth. We have achieved that, if the generic market has grown at a 7 to 8% in Japan, we have managed over 13%. Despite the Japanese authorities implementing stringent price control measures, we have maintained this growth rate. In its absence the growth would have crossed 24%. At this rate, we should easily cross a revenue of R1,000 crore there in next three years time.

How far are we from the second acquisition in the Japan market? And haven?t you tied up with a few innovator pharma firms to market their drugs in the Japanese market?

This is in alignment with our Japan strategy but I cannot comment on this as I am bound by confidentiality agreements. Also we are still evaluating portfolios.

When would we see these drugs getting launched in Japan and in which therapeutic areas since the idea was to enter new therapeutic segments?

Next financial year and most of them in cardiovascular and CNS segments.

What are Lupin’s plans for the domestic market?

In India, last year we launched about 41 new products. We have equally handsome pipeline for India this year.

Any update on the biological drugs. When can we expect the first launch?

Of the six candidates we are pursuing, two have got regulatory clearances for clinical trials. These proteins would undergo clinical trials for six to eight months.

So the first launch in the country, you may see around the end of this financial year or beginning of the next.