Posted on April 3, 2025, by Niftynews
Lupin share price saw a significant jump of nearly 7%, reaching ₹2,150 per share on the National Stock Exchange (NSE). This surge comes on the heels of the announcement that Lupin Healthcare (UK) Ltd, a wholly-owned subsidiary of the pharmaceutical giant Lupin Ltd, has successfully acquired Renascience Pharma Ltd for GBP 12.3 million.
Lupin’s Strategic Acquisition of Renascience
The acquisition of Renascience marks a significant milestone for Lupin in the UK market. With this move, Lupin Healthcare (UK) now holds 100% ownership of Renascience, which will officially become a subsidiary of Lupin Healthcare (UK). The deal will further strengthen Lupin’s footprint in the UK’s healthcare space, where the company has been consistently delivering value through its branded medicines.
In an official filing with the stock exchanges, Lupin confirmed that the transaction was not a related-party deal and that none of the company’s promoters had any interest in the acquisition. This clarification helps reassure investors about the transparency of the transaction.
What Does Renascience Bring to Lupin?
Renascience Pharma specializes in providing products that cater to unmet medical needs in the UK. The company’s portfolio includes:
- Injectables for infectious diseases
- Oral therapies targeting cardiology and nephrology
- Ear drops for pain management
In the 2024-25 fiscal year, Renascience reported a turnover of GBP 3.51 million, an increase from GBP 1.87 million in FY24. This growth highlights the potential of Renascience’s portfolio in further strengthening Lupin’s position in the UK market.
Fabrice Egros, President of Corporate Development at Lupin, commented on the acquisition, saying, “In recent years, Lupin has established a highly successful branded business in the UK, delivering significant value to patients and the NHS (National Health Service). This strategic move allows Lupin to further enhance our branded medicine portfolio, catering to unmet medical needs and furthering our mission to provide accessible and sustainable healthcare solutions.”
Lupin’s Financial Growth and Strong Outlook
Lupin’s recent financial performance also provides a strong foundation for this acquisition. In the Q3 FY25 results, Lupin Ltd reported a 38.81% increase in Profit After Tax (PAT), reaching ₹858.86 crore compared to ₹618.8 crore during the same period last year. Additionally, revenue from operations saw a healthy 10.97% growth, amounting to ₹5,767.71 crore, up from ₹5,197.41 crore in the previous year.
These positive figures underscore Lupin’s financial stability, which makes it well-positioned to integrate and leverage Renascience’s portfolio to further its expansion in the UK and beyond.
Impact on Lupin Share Price and Future Prospects
Following the acquisition announcement, Lupin share price saw an impressive rally, climbing as much as 6.98% to ₹2,150 per share, before stabilizing at ₹2,099.35 as of 11:12 AM. The positive movement reflects investor confidence in Lupin’s growth strategy and the potential long-term benefits of the acquisition.
This move is part of Lupin’s broader strategy to enhance its presence in emerging markets while focusing on high-growth segments such as branded medicines. With the ongoing expansion of its portfolio and strategic acquisitions like Renascience, Lupin is poised for continued success in the competitive pharmaceutical market.
Conclusion: Should You Invest in Lupin Shares?
Given the positive outlook surrounding Lupin’s recent acquisition and its solid financial performance, Lupin shares appear to be a promising investment. The company’s focus on branded medicines and its efforts to cater to unmet medical needs in key markets like the UK further bolster its growth prospects.
For investors looking to add pharmaceutical stocks to their portfolio, Lupin is likely to remain a solid choice. As the company continues to make strategic acquisitions and expand its product portfolio, Lupin share price could see sustained growth in the coming months.
