Lupin partners with Nichi-Iko to launch biosimilars in Japan

Lupin, a pharma large-cap company engaged in manufacturing, developing and marketing branded and generic formulations, biotechnology products and APIs, has entered into a strategic partnership with Japan’s Nichi-Iko. The news seems to have been discounted and thereby the stock of Lupin witnessed profit booking in Monday’s trade, shedding 2 per cent and more, after four consecutive daily upticks.

Lupin holds manufacturing capabilities in India, Japan, USA, Mexico and Brazil. With the said partnership, Nichi-Iko will distribute, promote and sell Lupin’s recently filed biosimilar Etanercept (YLB113) in Japan. Biologics market in Japan is expected to hit US$13.5 billion next year and hence the successful commercialization of this product will help the company foray into this space and benefit from it. Etanercept is used to treat a range of severe autoimmune disorders.

The stock of Lupin has been trading with lower tops and lower bottoms since long. It witnessed provisional bottom fishing at 723-727 levels, with kind of a Double Bottom on the weekly time frame. Post that, the stock gave a reversal and witnessed 4 consecutive weeks of upside. Meanwhile, on a daily time frame, the stock gave a trendline breakout at 837 and breached its major resistances at 843 followed by 847, breaking the bearish trend. Those who are already in, can hold the stock for some more upside.