Growth Levers

Reflecting on the highlights from FY24, we made substantial progress in our evolution to complex generics, a major step forward with gSpiriva (tiotropium), now commercialized in the U.S. and Canada. The Respiratory segment currently generates roughly a quarter of our global sales, and is now a material differentiator for our company, one of the main pillars of our strategy. Our U.S. business contributed significantly to the performance in the year, with products such as Tiotropium, Albuterol, GaviLyte, and Suprep driving a material part of the revenues. Complex generics in the U.S. now constitute around 40% of our sales. In India, we grew 25% faster than the Indian Pharmaceutical Market, with notable performance in the Cardiology and Respiratory therapy areas. Our growth in our internal portfolio of products has been commendable. Going forward, we are committed to also improving our performance in the diabetes segment, which has witnessed degrowth due to multiple factors, including loss of exclusivity in select brands and reduced margins. Overall, we aim to achieve an organic growth of 30% higher than the market. We are proud to be a partner of choice in India, ensuring we get the best in class solutions to our patients through our strong and diverse portfolio.

Our EMEA performance has been robust, with overall sales exceeding USD 200 Mn for the first time. Canada grew 17%, and Australia surpassed the AUD 100 Mn mark in revenues. Our businesses in South Africa and the Philippines achieved solid growth and have strong projections for the coming fiscal year, and our API Plus division saw a 21% increase in sales compared to FY23.

R&D Yields Robust Results

On the R&D front, we have continued to pivot to more complex products, especially inhalation and complex injectables where we have invested close to 50% of our R&D spend during the year. We intend to maintain our lead on the respiratory front by being the first to bring products on key platforms to developed markets. Complex products today constitute around 40% of our U.S. portfolio, which we expect to grow to above 50% in the next few years. In FY24, more than 80% of the new product sales in the U.S. were from non oral-solid products.

Our robust R&D efforts have resulted in 33 filings, 63 approvals, and 41 launches globally. Key product launches such as Tiotropium, Diazepam Rectal Gel and generic Prolensa in the U.S., Vilfuro-G and Difizma in India and complex product filings, including Risperidone Long Acting Injection, highlight our commitment to delivering innovative and much needed solutions to our patients.

Focus on Quality and Compliance

Enhancing our position in quality and compliance has been and continues to be a big part of our focus. While we faced regulatory challenges at certain facilities in the last few years, we have made impressive strides on the quality and compliance front successfully. We addressed the warning letter from the U.S. FDA with regard to our facilities in Pithampur and Goa. We are glad to share that all our facility inspections in the last 18 months have resulted in satisfactory outcomes. Going forward, we aim to achieve regulatory clearance for the two pending sites and attain a sustainable state of compliance across our entire manufacturing network. We aspire to be best in class on the quality and compliance front, a trusted partner for high quality medicines for all the patients and communities we serve.

Expansion of Footprint and Portfolio

complex injectables portfolio in Europe. Further, we strengthened our respiratory portfolio and Specialty business by acquiring two brands from Sanofi, Nalcrom in Europe and Aarane in Canada. We also strengthened our India portfolio through the strategic acquisition of diabetes brands Ondero and Ondero Met from Boehringer Ingelheim, and the acquisition of five brands from Menarini.

Driving Innovation in Healthcare

Going beyond the pill, we have delivered better patient outcomes and holistic healthcare by addressing unmet needs and leveraging innovation in healthcare. Lupin Diagnostics has gained momentum with the highest percentage of NABL-accredited laboratories amongst peers in India and serves over 100,000 customers on a monthly basis. Our digital therapeutics platform, Lyfe, is gradually expanding its footprint in India, and Atharv Ability, our neuro-rehabilitation center in Mumbai, addresses a significant void to deliver transformative outcomes for patients.

Digital First

Since we embarked on a comprehensive digital transformation journey in 2021, we have continuously leveraged next-gen technologies to enhance datadriven decision making and agility in our business operations. We are now deploying transformative AI-led digital solutions across our manufacturing operations, supply chain, sales, finance, and HR, amongst others. The outcome of these initiatives has translated into better process efficiencies, improved regulatory compliance and enhanced business intelligence and transparency.

Future Growth

Reflecting on our progress, we are committed to continue to build on the momentum over the coming year. Our strong foothold in key regions and therapeutic areas, as well as sharp focus on our delivery, will be key levers while executing on our strategic vision to achieve sustainable growth.

Our success is made possible by the hard work and dedication of our teams, the trust of our investors, and the guidance of our stakeholders. As we embark on the next chapter of our journey, we remain committed to growth, quality, operational excellence and innovation. We aspire to evolve Lupin as a trusted partner for innovative and affordable medicines in the years ahead. We are grateful for your steadfast support and trust in Lupin. We are committed to pursue greater milestones, transforming Hope into Healing and creating sustainable value for all stakeholders.