Lupin shares in focus after exclusive deal with Chinese firm for diabetes, obesity management drug

Shares of Lupin Ltd. are in focus on Tuesday, December 30, after it inked an exclusive licensing, supply and distribution agreement for a GLP-1 drug.

The pharma company has signed the agreement with China-based Gan & Lee Pharmaceuticals for Bofanglutide. With this, it gets exclusive rights for India to commercialise and distribute Bofanglutide.

The drug is a fortnightly, or once-in-two weeks, injectable GLP-1. It is indicated for Type 2 diabetes and weight management.

Lupin said it is potentially first-in-class globally. Clinical data shows weight loss efficacy is comparable to or better than existing GLP-1s, it said.

The key differentiator is that

it requires less frequent dosing — once every two weeks in comparison to weekly injections for the current GLP-1 therapies.

This agreement strengthens Lupin's diabetes treatment drugs portfolio and accelerates its entry into the obesity treatment segment.

40 analysts have coverage on Lupin, of which, 29 have a "buy" rating, eight say "hold", while three have a "sell" rating on the stock.

Lupin shares ended the previous session 1.4% lower at ₹2,082 apiece. The stock has declined 11.9% this year, so far.

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