Lupin Share Price Rises as Nomura Stays Positive Amid Patent Litigation
Shares of pharmaceutical major Lupin Ltd. rose in early trading hours on Thursday, following a ‘buy’ call from brokerage firm Nomura, despite the company’s ongoing drug patent litigation issue. According to a report by NDTV Profit, the brokerage firm has maintained a positive rating on the company, with a target price of Rs 2,350.
The optimism from Nomura comes after the United States District Court for the District of Delaware ruled in favour of Astellas Pharma, which had raised a patent infringement case against Lupin’s generic product ‘Mirabegron’. The court’s decision was announced on Wednesday, and Lupin responded to the verdict through an exchange filing on Thursday. According to the filing, "The Court noted that the issues of whether Lupin’s products infringe the ’780 patent, damages, and any additional invalidity theories will be litigated at a consolidated jury trial in 2026."
Despite the litigation concerns, Nomura believes that there is a strong possibility of generics prevailing in this case. As quoted by NDTV Profit, a note by Nomura stated, "We believe that there is strong possibility of generics prevailing in this litigation." The brokerage firm analysed two possible cases: a possible restraining order or injunction that prevents generics from selling the product, in which case the earnings per share value estimate for fiscal 2026 may be impacted by 6.7%. However, they clarified that there is likely no material impact on the next fiscal’s estimates.
Nomura’s positive stance on Lupin is reflective of the firm’s confidence in the company’s ability to navigate the patent litigation issue. As reported by NDTV Profit, the brokerage firm has maintained a ‘buy’ call on Lupin, citing a target price of Rs 2,350. This suggests that Nomura expects Lupin’s share price to rise in the coming months, despite the ongoing litigation concerns.
The patent litigation issue is a significant concern for Lupin, as it could potentially impact the company’s sales and revenue. However, according to NDTV Profit, Nomura believes that the impact of the litigation on Lupin’s earnings will be limited. The brokerage firm’s analysis suggests that even in the event of a restraining order or injunction, the impact on Lupin’s earnings per share value estimate for fiscal 2026 will be limited to 6.7%.
In conclusion, Lupin’s share price rose in early trading hours on Thursday, following a ‘buy’ call from Nomura. Despite the ongoing patent litigation issue, the brokerage firm has maintained a positive rating on the company, with a target price of Rs 2,350. As reported by NDTV Profit, Nomura believes that there is a strong possibility of generics prevailing in this litigation, and that the impact on Lupin’s earnings will be limited. With a ‘buy’ call on the company, Nomura is clearly optimistic about Lupin’s prospects, despite the ongoing litigation concerns.
NDTV Profit has been providing in-depth coverage of the stock market and financial news, offering expert analysis and insights to investors. The publication’s report on Lupin’s share price and Nomura’s ‘buy’ call provides valuable information to investors looking to make informed decisions about their investments. For more information, please visit NDTV Profit.
