Summary
Generic companies have the creative R&D to develop value-added products and compete head-to-head with branded companies Branded companies see generics as an easy way to add products for their sales teams
Analysis
Lupin is one of the more progressive Indian founded companies. I specifically use the word 'founded' and not 'based' as they have a good policy of recruiting local senior management from the country of new entry. This is in stark contrast to most of their Indian competitors who insist on installing Indian management teams, believing control and information flow is better than 'know-how'.
Lupin is one of many generic companies starting on a the branded generic hybrid path, covering both Rx & OTC.
Lupin has a stated R&D strategy, acquiring a relatively low value asset, giving access to a specific GP and consumer base, is a cute way to establish an entry for pipeline of therapy targeted drugs.
Generic R&D facilities are highly productive and greatly proficient at finding new ways to create old products; once this is focused on formulations, there is no reason why an abundance of 'value added generics' cannot be marketed under existing brand banners.
