Gavis takeover has brought the spotlight on an Indian company and its CEO, Vinita Gupta
The $880 million (Rs 5,610 crore) takeover of the US-based Gavis Pharmaceuticals by Lupin, the biggest-ever overseas acquisition by an Indian pharma company, has brought to limelight its chief executive officer, Vinita Gupta. The elder daughter of Lupin founder-chairman Desh Bandhu Gupta, Vinita is among a handful of female entrepreneurs calling the shots in the Indian pharma and healthcare space, predominantly controlled by men. A pharmacy graduate from the University of Mumbai and an MBA from J L Kellog Graduate School of Management, the 47-year-old is today one of the most important people in the US pharma space at present, say industry experts dna spoke to. Vinita also found place in Forbes' 2014 list of 50 'Power Businesswomen' in Asia.
Vinita, who also heads Lupin Pharmaceuticals Inc, has been instrumental in the company’s growth in the advanced markets business of US and Europe. “Gupta’s contribution is phenomenal in charting out the company’s success story in the US. Under her leadership, Lupin has emerged as a global generic player, especially in the US market,” said an industry insider.
Maryland-based Vinita, who took charge of the US business in 1992, plays a significant role when it comes to taking tough calls, along with brother Nilesh Gupta, who became managing director in 2013. “Vinita plays a leading role when it comes to identifying the newer geographies and assets. The Gavis deal was spearheaded by her. Lupin's US business grew manifold under her,” said a Mumbai-based pharma analyst who wished not to be quoted.
From the manufacturer of primarily anti-tuberculosis drugs to the third largest pharma company by sales and the second largest in terms of market capitalisation, Lupin has come a long way under DB Gupta and former managing director and present vice-chairman Kamal Sharma. The brother-sister duo of Nilesh and Vinita played a critical role to make the company what it is today. From a total income of Rs 2,912.82 crore in 2007-08, Lupin has taken long strides to Rs 13,009.76 crore in 2014-15. Net profit grew from Rs 408.25 crore in 2007-08 to Rs 2,403.24 crore in 2014-15. This is largely driven by the US sales, which contributes to nearly 40% of the company’s overall business.
Lupin today is the fifth largest generic player in the US (with 5.3% market share by prescriptions as per IMS Health) and with this deal the company hopes to strengthen its US portfolio. The recent acquisition offers Lupin its first manufacturing base in the US along with a pipeline of strong 66 products awaiting the US FDA approvals, largely in dermatology, controlled substances and other high-value niche generics. “Vinita is the one who facilitates all the international deals. In the last eight years, Lupin has grown in leaps and bounds in the US,” said an industry expert. The international markets account for over 70% of the company’s total revenue.
The Gavis deal has been termed expensive by a slew of analysts. According to them, the deal is expensive at over nine times, as Gavis clocked revenue of only $96 million in the last fiscal.
But during the post-deal interaction with media, Vinita was hopeful that Gavis would be able to report a revenue growth of around $300 million by 2018, thanks to its strong pipeline. Apart from 66 abbreviated new drug applications (ANDAs) filings pending approval, the New Jersey-based Gavis has nearly 27 approved ANDAs and over 65 products under development.
Vinita, who lives with her husband Brij Sharma, a US-based entrepreneur, and son, has a dream: to take her company's revenues to $5 billion by 2018.
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