Lupin Limited - India's Leading Pharma Company

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Case Details:

Case Code : BSTR191
Case Length : 12 Pages
Pages Period : 1998-2005
Organization : Lupin Laboratories
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Themes : Growth Strategy
Industry : Pharma and Biotech

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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About Lupin

On April 01, 2000, Lupin Chemicals and Lupin Laboratories merged to form Lupin Limited. Lupin derived its name from the 'Lupin flower,' believed to have healing powers.

The company was a brainchild of Dr. Desh Bandhu Gupta (Gupta), an honorary doctor of philosophy with a master's degree in chemistry. He started his career teaching chemistry at Birla Institute of Science and Technology, Pilani, Rajasthan. Incorporated in the year 1972, Lupin Laboratories set up a formulations unit and an in-house R&D centre in 1980. Lupin's R&D centre received recognition from the Department of Science and Technology (DST) in the year 1981. In the same year, Lupin was ranked 62 among Indian pharma companies with sales of Rs. 30 million. The company then strengthened its position in the anti-TB market with the introduction of Rifampicin. It also introduced other anti-TB products like Ethambutol and Pyrazinamide...

The Success Saga

Several factors contributed to the success of Lupin. Significant among them was the vision and leadership of Gupta, who was actively involved in day-to-day functioning of the company. He envisioned Lupin as an innovation-led transnational company.

He believed that research was an important aspect of the pharmaceutical industry and businesses could thrive only if they continuously innovated and modified their offerings based on the needs of the consumer. To achieve his dream, he invested heavily in research. In an October 2004 press release, Gupta said, "We are investing for the future. I believe that in the long term what will distinguish great pharma companies from the good ones is the intellectual property they own. At Lupin, we have taken conscious decision to build this property and have decided to increase our spend on R&D from 3% of sales earlier to 8% of sales this year".The top management at Lupin felt the need for research in chest related infections in India, especially TB...

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