The Comeback Plan

Lupin is betting on its specialty drugs business to counter the pricing pressures in the US generics market 

Photographs by Soumik Kar

The pharmaceutical industry is currently in a state of flux amid structural changes in international as well as the domestic markets. In the US, the largest pharmaceutical market in the world, pricing pressures owing to increasing competition and consolidation of the distribution channels have significantly dented the profitability of players. Closer to home, the push to increase the use of generics, increased price controls and the impact of GST took some sheen away from the lucrative Indian market. Lupin, which gets 70% of its revenue from India and the US, has been bearing the brunt of it over the past couple of quarters.