POWERING UP
CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR’S LETTER

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Vinita and Nilesh Gupta

Vinita Gupta, Nilesh Gupta

Chief Executive Officer, Managing Director
Lupin Limited

"16,000+ Lupinytts believe that their best is yet to come. We are powering up to embrace our future as a specialty pharmaceutical major"

Powering Up


Chief Executive Officer and Managing Director’s Letter

Dear Shareholders,

FY 2016 was a very important year for Lupin and marked the beginning of a new era in Lupin’s evolution as a global pharmaceutical powerhouse. A transformational year, which saw us accelerate our efforts to increase depth and expand our presence in key markets such as US, India and Japan thus adding to our leadership credentials. It was a tough year for the Industry, but record approvals and significant launches enabled Lupin to deliver strong operational performance, countering a volatile economic environment, price erosion, customer consolidation and price cuts and controls. Lupin’s Net Sales grew to 137,016 million; EBITDA stood at 39,412 million while our Net Profits were 22,707 million during FY 2016. The Company has delivered a Compounded Annual Growth Rate (CAGR) of 19% in Net Sales, 27% in EBITDA and 21% in Net Profits for the last 5 years.

Lupin is today the 7th and the 9th largest generic pharmaceutical company by market capitalization and sales globally (Bloomberg, FY 2016). The Company is also the 5th largest pharmaceutical player in the US (by prescriptions, IMS Health); the 3rd largest Indian pharmaceutical company by revenues and the 9th largest generic pharmaceutical company in Japan.

FY 2016 saw the Company make its highest investment in research so far, as we focused on building a pipeline in niche high-barrier segments such as Inhalation, Biosimilars and Complex Injectables. Lupin also added and operationalized 3 new manufacturing facilities (2 Formulations and 1 API facility) in India to meet future market demand.

Importantly, we completed the acquisition of US based Gavis Pharmaceuticals LLC and Novel Laboratories Inc. for USD 880 million. This is the largest acquisition made by an Indian pharmaceutical company in the US. It enhances Lupin’s scale in the US generics market and broadens our pipeline of high-value complex generics and specialty products. With the addition of Gavis/Novel (Lupin Somerset), we now have the 5th largest ANDA pipeline pending approval with the US FDA. In FY 2016, we also acquired Medquímica Indústria Farmacêutica S.A., in Brazil and a specialty portfolio of 13 products from Temmler Pharma GmbH & CO. KG in Germany.

We are inking a new future and have added depth to our leadership teams by appointing business leaders for Europe, Middle-East and Africa, Latin America and Asia Pacific to grow these markets. Our consistent investments in technology, people and systems has ensured operational excellence and leadership in areas of innovation and quality.

Our 16,000+ Lupinytts believe that our best is yet to come. We are powering up to embrace our future as a global generics powerhouse and a specialty pharmaceutical major.

Vinita Gupta, Nilesh Gupta
Chief Executive Officer, Managing Director
Lupin Limited

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