Aurobindo Pharma Targets a Revenue of Over $ 3 Billion by 2017-18

by Vishnuprasad on  August 24, 2015 at 2:34 PM Drug News
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Aurobindo Pharma Limited is a pharmaceutical manufacturing company headquartered in Hyderabad, India.
Aurobindo Pharma Targets a Revenue of Over $ 3 Billion by 2017-18
Aurobindo Pharma Targets a Revenue of Over $ 3 Billion by 2017-18

Aurobindo Pharma is targetting a revenue of over $ 3 billion (over Rs 19,800 crores) by 2017-18 and plans to expand its basket with new drugs to treat cancer and hormonal diseases, as also with various nutraceuticals and Over The Counter (OTC) products.

The Hyderabad-based firm, which posted revenues close to $ 2 billion last fiscal, has sizable presence in key therapeutic segments such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics and gastroenterology and cephalosporins, among others currently.

"Team Aurobindo is working day in, day out to make the company even more efficient, even more profitable and has set ambitious targets for the coming months and years, including crossing revenues of $ 3 billion in 2017-18," Aurobindo Pharma, Vice Chairman, K Nithyananda Reddy said in his annual letter to shareholders.

The company has several levers to gain traction with a robust business model, a large differentiated product portfolio that addresses six key therapeutic areas and a growing presence in over 150 countries, he added.

As part of its growth strategy, the company is exploring opportunities in the nutraceuticals market, as per the company's Annual Report for 2014-15.

"Research and Development (R&D) activities have been initiated to identify and develop synthetic nutraceutical products," the company said.

As part of the initiative, it is looking to deepen integration with nutraceuticals player Natrol Inc, which it acquired for a consideration of $ 132.5 million last year.

"Our strategy is to grow the businesses profitably through a combination of cost and growth synergies. Several initiatives have been taken to enhance operational leverage, increase volumes and optimise costs," it said.

Natrol manufactures and sells quality nutritional supplements in the US and select international markets.

As per industry estimates, nutraceuticals business is currently valued at $ 30-35 billion and is expected to reach around $ 55 billion in 2020.

On other product development programmes, Aurobindo said it is working on range of drugs aimed at treating cancer and hormonal diseases at its upcoming new R&D centre in Hyderabad.

"The company is also in the process of developing a wide range of oncology and hormonal products...We have done our first exhibit batches for five hormone products and the dossiers are expected to be filed in 2015-16," it said.

The tablet part of the oncology facility is completed and commissioned and the company has started to run exhibit batches. Besides, the injectable part of the oncology facility is planned to be commissioned in the later part of 2015.

"We are working on 15 oncology products and the plans are to prepare exhibit batches for injectables in the last quarter of 2015-16," the company said.

The company is also looking to develop new over-the-counter (OTC) products for the US retail market.

"70 liquid products have been developed, exhibit batches have been made for a few solids and some are undergoing stability tests. The company has also commenced marketing a few products through chain stores in the US," it said.

Aurobindo also plans to develop peptides, which are naturally occurring biological molecules. It has started investing in peptide technology and is building a commercial facility with two modules commensurate with cGMP standards.

"Necessary equipment have been commissioned and we have developed technologies for more than ten products. Validation batches have been completed for three peptides and sample shipments have commenced to customers for their development work," the company said.

Drug Master Files (DMFs) are being prepared and the company proposes to seek a few product filings before the end of 2015-16, it added.

"The peptides presently being developed include four microsphere and liposomal injectable products for which we are working towards filing these products in 2016-17. The addressable market for the four products is about $ 3 billion," the company said.

The revenue streams are planned to commence in 2015-16, it added.

Aurobindo has also developed and made filings for four products in injectable portfolio that are administered in the pre-operating process.

"We are working towards filing one more product within the next 12 months. The addressable market for all five products is $ 400 million in the US. Initially, the products are likely to be launched in Brazil and Mexico in 2015-16," the company said.

The company is also exploring entering nanospheres (in the penems segment) which have a much larger market, where the products have an addressable market of about $ 3 billion in the US.

Source: PTI

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