Lupin signs a strategic partnership with Onset Dermatologics for Locoid - Angel Broking

Lupin Ltd. and its US subsidiary, Lupin Pharmaceuticals Inc. (collectively Lupin) announced that it has signed a strategic co-promotion agreement with US based Onset Dermatologics, LLC ("Onset") that grants Lupin exclusive rights to promote Onset's Locoid Lotion (hydrocortisone butyrate 0.1%) to Pediatricians in the US.

Locoid is the most highly prescribed mid-potency steroid brand in the U.S. Locoid Lotion is a corticosteroid indicated for the topical treatment of mild to moderate Atopic Dermatitis in patients 3 months of age and older. Atopic Dermatitis (AD) is one of the most common skin disorders in young children and has a prevalence of 10% to 20% in the first decade of life. It is a chronic illness that requires a multifaceted treatment strategy in the setting of limited therapeutic options. Between 1997 and 2004, pediatric patients with AD (newborn to 18 years of age) accounted for an estimated 7.4 million office visits in the United States alone. AD, more commonly called eczema, now affects 10 to 20 percent of children in the United States and direct health-care costs exceed US $3bn, according to the National Institute of Arthritis and Musculoskeletal and Skin Diseases.

Locoid Lotion currently participates in a market that includes 17% of school-age children in the US between the ages of 5 - 7 years which is about 9.2 million children. The addition of Locoid Lotion will enable Lupin to strengthen its US Brand business and expand its product portfolio for the US Pediatrics segment. Lupin's current pediatric portfolio consists of Suprax and Alinia for Oral Suspension and such the Company is well positioned to capitalize on this opportunity. Onset has had minimal promotion of Locoid Lotion to pediatricians. Lupin's 160+ strong specialty sales forces will promote Locoid Lotion with Onset providing strategic marketing support thus creating an opportunity for incremental revenues with minimal additional sales or marketing expenses. We remain neutral on the stock.

Source : Equity Bulls

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