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China entry to help Aurobindo to tap emerging markets
Our Bureau, Hyderabad | Thursday, June 9, 2005, 08:00 Hrs  [IST]

The Hyderabad-based Aurobindo Pharma operates in China through its two subsidiaries Aurobindo (Datong) Bio-Pharma Company Limited and Aurobindo TongLing (Datong) Pharmaceutical Company Limited. The company's focus on China is purely on manufacturing front, and R & D support to Chinese operations is provided from India, with the help of a large team of scientists. Aurobindo has over 500 scientists as of today.
Aurobindo (Datong) Bio-Pharma was set up to manufacture 6 APA and other fermentation products and commenced commercial production in December 2003. The company has registered a total turnover of RMB 165, 689, 768 and incurred a loss of RMB 15, 759, 552 during the period. But the company hopes to get better results in the following years.

The company has set up a manufacturing facility o produce 1,500 TPA of 6 APA, a key intermediate in the manufacture of semi synthetic penicillins. The entire production is for captive consumption.

Aurobindo Pharma, the holding company has increased its capital to RMB 180,000,000 which constitutes 100 per cent of the capital.

Aurobindo TongLing was originally incorporated as a 50:50 joint venture company between Aurobindo Pharma and Shanghai TongLing Pharmaceuticals Company limited for manufacture of pharmaceutical products for the local market. Later in the year 2002, the joint venture partner's stake has been acquired by Aurobindo (Datong) Bio-Pharma and the company became a wholly owned subsidiary to Aurobindo Pharma.

During the financial year ended December 2003, the company registered a total turnover of RMB 218.6 million and loss of RMB 8.2 million.

Aurobindo Pharma, the holding company holds 50 per cent of the capital, whereas the rest was acquired by Aurobindo Datong Bio-Pharma from Shanxi TongLing Pharmaceutical Company Limited. Aurobindo TongLing caters to the local API market in China and has a plant to manufacture 1,000 TPA of amoxicillin and 600 TPA of oral cephalosporin.

In global markets, the company shall retain and enhance cost efficient quality leadership in semi synthetic penicillins, cephalosporins, newer anti infectives and lifestyle disease drugs. It is the endeavour of the company to achieve this by resolving complex chemistry challenges, improving process efficiencies, adopting global scale manufacturing and using cost effective market networks throughout South East Asia.

Aurobindo Pharma has presence in anti-infectives, anti-retrovirals, CVS, CNS, gastroenterologicals and anti-allergants. It has filed 56 DMFs / COS and 24 ANDAs in these segments with USFDA, EDQM. It has today over 110 APIs and formulations and exports to over 100 countries. More than 50 per cent of its sales go to emerging global markets.

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