Aurobindo bets on new drugs for sustained growth

The city-based pharma major is foraying into differentiated product lines such as peptides which are used in the treatment of diabetes and other areas

Hyderabad: City-based Aurobindo Pharma, which clocked 38 per cent growth in total revenues at Rs 8,100-crore last fiscal, is looking to maintain the growth momentum in the current fiscal and beyond through new product launches and by foraying into niche areas.

“We enter the new financial year 2014-15 with renewed optimism. We propose to drive further growth with new products, add to the momentum with niche launches and aim to enhanced profitability,” said N Govindarajan, Managing Director, Aurobindo Pharma, in the company’s annual report for the fiscal year 2013-14.

He further said: “With our known capabilities, we are also foraying, in a calibrated way, into differentiated product lines such as penems, peptides, oncology, hormone, neutraceuticals and OTC products”.

During 2013-14, the pharma major had a dream run with its net profit zooming by 299 per cent to Rs 1,172.85 crore from Rs 293.8 crore net in the preceding financial year (2012-13). The consolidated income also went up by 38.3 per cent from Rs 5,855.31 crore in FY-13 to Rs 8,099.79 crore. Buoyed by the phenomenal growth, the company is now targeting revenues of $2 billion (over Rs 12,000 crore) in the ongoing fiscal. “We generated traction by improving efficiency through operational excellence, cash generation through disciplined use of working capital and long-term growth by expanding on our strengths,” he added.

According to him, Aurobindo of today is far better positioned for long term sustainable growth and profitability. “We have several established products, a growing pipeline of newer niche products, proven execution capabilities and a competitive cost structure,” he added.

The company has made significant progress in the space of peptides, the naturally occurring biological molecules that are used in the treatment of diabetes and other areas. “Aurobindo has started investing in peptide technology and is building a commercial facility with two molecules. Necessary equipment has been commissioned and we have developed technologies for more than 10 products,” the annual report stated. The company is expecting revenues from some of these products to begin in the year 2015.

In the oncology and hormonal space, the company is in the process of developing wide range of products. “Our product capabilities include vials, prefill syringes and softgel capsules,” it added. Aurobindo had set up a dedicated R&D centre in Hyderabad to develop anti-cancer drugs and hormonal products, both for solid and parenteral dosage forms. The company expects to dossiers in this space in 2015-16. Its R&D is also focusing on penems in addition to exploring opportunities in synthetic neutraceuticals.

“In pursuing our vision to be a leading generic pharmaceutical company in the world, we are building on the inspiration, expertise and dedication of our people. In the medium term, we are leveraging the power of our carefully developed product portfolio, relationships built over a long period and a diversified customer mix,” said K Nithyananda Reddy, Vice Chairman, Aurobindo.