HEADQUARTERED IN ZUG, SWITZERLAND, LUPIN’S EMEA BUSINESS COVERS THE MARKETS OF EUROPE, MIDDLE-EAST AND AFRICA. LUPIN EMEA RECORDED REVENUES OF ` 8,863 MILLION DURING FY 2016, CONTRIBUTING 6% OF THE COMPANY’S GLOBAL REVENUES. LUPIN’S SOUTH AFRICAN SUBSIDIARY PHARMA DYNAMICS (PROPRIETARY) LIMITED (PD) ACCOUNTED FOR 45% OF THE REGION’S REVENUES DURING FY 2016.
Lupin is committed to increasing its presence in Europe, specifically in Russia, Poland and Eastern Europe. Healthcare spending for this region is forecasted to grow at 7.7% up to 2018. We are also looking to expand our presence in the Middle-East and Africa. We see rapid growth in healthcare spending in these two regions which would see an annual average increase of 8.7% till 2018, due, in part, to population growth and efforts to expand access to care.
Continuing its upward growth trajectory, Lupin’s Europe business recorded a growth of 30% with sales of ` 4,278 million during FY 2016 as compared to ` 3,279 million in FY 2015. Lupin further strengthened its footprint by acquiring the specialty products portfolio of Temmler Pharma GmbH & CO. KG. This enables Lupin to bring an enhanced specialty portfolio of 13 products to the German market including key Central Nervous System (CNS) products and specialty products that address rare disease areas like Myasthenia Gravis, Huntington disease as well as fast-growing dermatology products for anti-wart treatment.
The Company continues to build its partnered business by building its product portfolio and forging deeper relationships with select partners within the European Union (EU). Lupin’s business in UK, Germany and as well as our partnered business in Europe contributed equally to the strong growth performance with our German subsidiary Hormosan Pharma GmbH, growing by 51%.
Lupin continues to invest in creating a quality pipeline for European markets. The Company filed 8 marketing authorization applications with European authorities and received 3 approvals during FY 2016. Cumulative filings for Europe now stand at 67 with the Company having received 52 approvals to date.
The African Pharmaceutical Market is expected to grow by 10.6% on average, resulting in pharmaceutical sales of USD 45 billion by 2020. The growth in pharmaceutical sales is attributed to Governments striving to improve access to healthcare for their citizens as well as a very favourable economic and development outlook for the African continent. South Africa and North African countries boast of per capita incomes ranging between USD 6,000 and USD 11,000 and are important for our business as emerging markets.
The South African Pharmaceutical Market is valued at about USD 2.7 billion with the total market growing by 7.7% in value and 1.5% by volumes in FY 2016. Lupin’s South African subsidiary Pharma Dynamics (Proprietary) Limited (PD) clocked in revenues of South African Rand (ZAR) 835 million (` 3,998 million) during FY 2016, growing by 10% over the previous year in ZAR terms. PD is the 4th largest generics player and ranks amongst the top 20 pharmaceutical companies in South Africa. The Company is also the largest cardiovascular player in South Africa, across all companies.