We are delighted to present our Integrated Report for FY22, showcasing our wins, challenges, and the promise of what the future holds in store.
Our founder, Dr. Desh Bandhu Gupta (DBG), laid the foundation for the ethos that has remained the driving force at Lupin. This has ensured resilience and positive momentum despite challenges and roadblocks.
We are currently focused on a three-pronged strategy to achieve our organizational objectives:
During the year, we have made good progress and achieved good business outcomes in several geographies like India, Australia, the Philippines, Canada, Mexico and Germany; but at the same time, we continued to encounter substantial headwinds in our U.S. and API businesses. On the U.S. front, business conditions continue to be tough with intensifying competition, eroding margins and a rapidly commoditizing oral solid dosage business. We have however started to realize benefits of complex platforms like inhalation in the U.S., which constituted over 25% of our revenues during the year. Likewise, in the aftermath of the pandemic, demand for acute therapy products especially cephalosporins receded considerably, affecting the performance of our API business.
In India, Lupin continues to evolve faster than the market with the business growing 1.2 times the market growth rate. Our Chronic segments (respiratory, cardiology and diabetes) which are nearly 65% of our India business, registered strong double-digit growth and grew faster than the top 3 players in the Indian market. India formulation sales for FY22 were INR 60,042 Mn, up 13.9% as compared to INR 52,712 Mn in FY21; and accounted for 38% of Lupin’s global sales.
Even as we expanded our product portfolio into underrepresented therapies, we continued to focus on cardiology, diabetes, and respiratory to further consolidate on and grow faster than the market in these therapeutic areas. Following the successful acquisition of the Anglo-French brand portfolio, we are also enhancing our presence in the Nutraceuticals/Vitamins space. In FY22, our India OTC business surpassed the INR 100 crore milestone in revenues, registering a growth of 17%.
Keeping our patient's holistic healthcare needs in mind, we have also expanded into the field of Diagnostics. We believe that this would be synergistic to our existing India business, providing doctors broader solutions for the patients we serve. The Diagnostics arena is very fragmented, and we believe that there is tremendous long-term potential for a trusted, quality play in this field.
Lupin continues to be the 3rd largest pharmaceutical player in both the U.S. generic market and U.S. total market by prescriptions (IQVIA MAT March 2022). Our North America sales for FY22 were INR 57,556 Mn compared to INR 55,520 Mn in FY21; and accounted for 36% of Lupin’s global sales. This year, our current U.S. portfolio, largely dominated by oral solids, came under significant pricing pressure. We have in recent times taken several initiatives to optimize costs. These measures are being further enhanced with renewed vigor across the entire value chain to rationalize our overall cost structure and restore the health of our U.S. business. In complex generics that are a crucial part of our future growth, we made significant progress in Inhalation with Albuterol recording 20% generic market share and successful launch of Brovana generic.
With our pipeline evolving to more complex generics across inhalation, injectables and biosimilars, we believe that we are well positioned to drive growth while strengthening our position as a trusted, quality organization serving the cause of affordable medicines.
Our EMEA sales for FY22 were up 6.3% to INR 13,592 Mn as compared with FY21. NaMuscla®, the first licensed medicine to treat symptomatic myotonia in adult non-dystrophic myotonia patients continues to be a growth driver. In addition, we entered into alliances for Fostair Gx and Tiotropium, ensuring that we have complete regional commercial coverage to maximize our inhalation portfolio across Europe. In the U.K., the ramp-up of Luforbec has continued, while we increase our focus on the delivery of the future pipeline to ensure continued success.
In our Growth Markets, the impact of COVID was felt most sharply in Brazil. Philippines recovered sharply after eroding a fair bit in the past year and is poised for greater growth in the future.
In Australia, we completed the acquisition of Southern Cross Pharma; this will materially grow our presence in the Australian market. In Canada, we continue to deliver strong performance, driven by our lead brand Zaxine, as well as our growing internal generics portfolio.
In FY22, we closed an alliance with Foncoo Pharmaceutical Co. in China to commercialize our CNS medications, allowing us to continue our mission of offering affordable and accessible healthcare to the world.
From a pipeline perspective, we continue to evolve our complex generics platforms and build a truly valuable portfolio of products catering to markets across the world. On the Inhalation front we have already seen the benefit of generic Albuterol MDI and the Brovana authorized generic in the U.S., both contributing meaningfully to revenues and the bottom line. We are making steady progressing on our next major U.S. inhalation introduction with Tiotropium DPI, as well as making progress on other pipeline programs. During the year, we made progress on Respimat with the TTP partnership that has given us access to this complex inhalation platform. Pipeline products, such as biosimilar Ranibizumab and Aflibercept are progressing well. Our NCE efforts in oncology are going strong; during the year we received USD 50 Mn milestone from Boehringer Ingelheim under our partnership, we made progress on our NCE oncology pipeline and are well positioned to monetize/ partner the pipeline to bring much needed solutions for unmet medical needs.
Inflationary pressures for essential raw materials and intermediates further exacerbated some of the business challenges during the year. We hope to start seeing these pressures recede in FY23.
In FY22, we had three US FDA site reinspections and we are pleased to say that our Goa facility was upgraded to a satisfactory VAI status. This allows us to introduce new product from this site.
Our people are our biggest strength, and the Lupin team is committed to overcome the current challenges and emerge a stronger, more innovative and efficient organization.
Since 1988, the Lupin foundation has been striving to improve society by improving livelihoods, empowering rural people, creating employment opportunities, improving health and quality of life, and developing basic infrastructure. In FY22, on DBG’s birth anniversary, we introduced the Lives pillar as part of our CSR focused on improving health in the communities we serve, and going forward, our activities will concentrate equally on Livelihood and Lives.
We are on the path of executing well on our strategy, anchored by portfolio evolution, differentiation and efficiency. We are committed to deliver long-term, sustainable growth in revenues and profitability. Carrying forward DBG’s legacy, we are continuing his mission of universal, affordable, high-quality healthcare, and are committed to the cause of Building Better Health.