HYDERABAD: Notwithstanding the regulatory challenges, Aurobindo Pharma Ltd is betting big on the US market, which accounts for nearly half of the firm’s revenue.
The world’s 10th largest generics company is eyeing an all-round growth in the US market coupled with significant expansion in its injectables portfolio. It may be noted that Aurobindo’s three plants are under the US FDA scrutiny, though the firm maintained its impact to be negligible.
“The US business contributed to 46 per cent of our revenue and registered strong 21 per cent growth during the year at Rs 9,030.7 crore as all-out key business segments including orals, injectables, over-the-counter drugs and dietary supplements performed well. It was a busy year for the US team as we launched 50 new products, including 12 injectables in the market. Also, in 2018-19, we received approvals for 48 abbreviated new drug applications (ANDAs) and filed for a total of 63 ANDAs with the US FDA. While these filings will drive organic growth in the US market, during the year, we also had the opportunity to pursue inorganic growth that will help us enter new therapeutic areas and segments including branded oncology products,” said N Govindrajan, MD, Aurobindo Pharma.
He said Aurobindo’s ability to produce affordable drugs and enter new therapeutic segments and geographies will be key factors in expansion across growth markets. To support growth, the company is investing in expanding capacities and has commissioned Unit X — a greenfield oral solid manufacturing facility at Naidupet in Andhra Pradesh with a total installed capacity of 6 billion units every year.
According to Govindarajan, Aurobindo’s continued growth was higher than its industry peers due to its non-dependence on single product or an event that determines its success. “We are present in multiple geographies, across products, delivery mechanisms and therapeutic areas and our sustained growth over the years is a result of our actions in all these areas,” he said.