Lupin in teaming up spree, on verge of breakout

Lupin, the tuberculosis drug specialist company, in which Rakesh Jhunjhunwala holds 1.9 per cent stake was trading 1 per cent higher when the Pharma index was flat. On Friday, Lupin grabbed the second position as the top pharma gainer after Divis Lab which was trading 3 per cent up.

The company has announced a joint venture with Municipal Corporation of Greater Mumbai (MCGM) for detection and addressing active TB cases in Mumbai. The same is expected to be done through door-to-door active case detection covering 24 wards in the city. Ultimately, both Lupin and MCGM aim at making Mumbai a TB-free city by the end of 2025.

A day ago, Lupin teamed up with Mylan, where Mylan would commercialise Embrel (etanercept), an autoimmune disorder drug in Europe, Australia, New Zealand, Latin America and some Asian countries. Earlier, Lupin had also teamed up with Nichi-Iko to sell the drug in Japan.

In-line with the reversal in the pharma sector, Lupin reversed from its multiple support near 725 levels and hit 925 levels during mid-June. Meanwhile, the stock of Lupin also breached its horizontal trendline level of 835 levels. After 925, the stock consolidating at higher levels as if a Flag pattern is in the making. Hence, if the stock sustains 914 on a closing basis, we can expect some more upside in the near term.