Acquisition of Actavis business in Western Europe helped European formulation segment rise by 359% year-on-year
Indian pharmaceutical company Aurobindo, based in Hyderabad, aims to achieve a turnover of US$2bn in the current financial year. The drugmaker also hopes to seek approvals for nine more injectables from the US FDA.
Leveraging its state-of-the-art manufacturing infrastructure for APIs and formulations and a wide and diversified product portfolio, the company has transformed itself from being an API supplier to a formulations player and 90% of its formulations are now backward integrated.
As a result of its cost efficiency and strong product filings, Aurobindo entered into a long-term supply agreement with Pfizer and AstraZeneca, which has provided significant revenue. The company is in discussion with other multinationals for more such agreements.
Aurobindo had made 300 submissions to the US FDA at the end of 2013, and by the end of March this year, the submissions totalled 336 ANDA filings.
With regard to its long term growth strategy, Aurobindo plans to penetrate the markets of Japan, Brazil and other Latin American countries through joint ventures, subsidiaries or organic means.
Following the US$41m acquisition of some of Actavis' commercial operations in Western Europe in January, Aurobindo said the objective is to expand the front end operations into five segments such as generics, prescription products, over-the-counter products, hospital products and generics tenders, with approximately 1,250 dossiers and an additional pipeline of more than 200 products.
The company's revenue in Q2 2014 grew 70.3% year-on-year, led by a 106.7% growth in formulations. At the same time, the company started integrating the Actavis business, which helped its European formulation business to grow by 359% year-on-year, while its US business grew by 78.6%.
In the API segment, Aurobindo's Non-Betalactum segment drove growth, registering a rise of 5.5%. Overall, formulations now contribute around 77.2% of sales, while API’s contribute around 22.8% to sales.