Lpin Pharmaceuticals Case Study

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Problem Description
Vinita Gupta, CEO of Lupin Ltd, the seventh largest pharmaceutical company is looking at both organic and inorganic growth opportunities, and eyeing some big-ticket acquisition including European market, where it has a very small presence as of now. On 23rd July 2015, the board of Lupin Pharmaceuticals gave an in-principle approval to raise up to Rs. 7500 crore. The company is reportedly looking at some big acquisitions and may utilize the funds for the purpose. The company has to come up with a financial plan that improves the value of the firm in short, medium and long-term.
Historical Background
Lupin was named after the Lupin flower that nourishes the land, i.e., the very soil it grows in. The Lupin flower can also be tolerant of infertile soils and capable of bringing about a radical change in barren and poor climes.
Lupin was founded in 1968 by Dr. Desh Bandhu Gupta, who was then an Associate Professor at BITS Pilani, Rajasthan. The company was created with a vision to fight life-threatening infectious diseases and to manufacture much needed drugs in the society that can make a difference.
Lupin Chemicals Ltd was initially promoted by Lupin Laboratories Ltd. In 1972, the company was established as a Private Limited company. Lupin Ltd was incorporated under the name Lupin Chemicals …show more content…

The Indian pharmaceutical industry consists of manufacturers of bulk drugs and formulations. Bulk drugs also include the active pharmaceutical ingredients (APIs), which are used for the manufacture of formulations. According to recent estimates, the proportion of formulations and bulk drugs is in the order of 75:25. There are believed to be more than 60,000 formulations manufactured in India for more than 60 therapeutic segments. More than 85% of the formulations produced in the country are sold in the domestic market. India is largely self-sufficient in case of formulations, however some life saving, new-generation-technology-barrier formulations are

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