Aurobindo Pharmaceuticals Ltd (APL) is a fast track R&D driven, vertically integrated pharma company based in Hyderabad with presence across the world. With annual sales of Rs 1,200 crore, Aurobindo ranks among the top five pharma companies in India, among top 4 SSP (semi-synthetic penicillin) manufacturers globally. It is a leading company in cephalosporins and anti-virals globally with exports to over 70 countries.
Established in 1986 by P V Ramaprasad Reddy (chairman), K Nityanand Reddy (MD) and a small, highly committed group of professionals, Aurobindo Pharma is well-equipped for the post-2005 regulated regime with strength in R&D, IP, manufacturing, marketing and cost-effectiveness and to achieve a profitable market share in global API/generics business.
Lanka Srinivas, former CEO of Sun Pharma and now Director of APL, who spearheaded the company's restructuring exercise, told Chronicle Pharmabiz that the company had invested $ 100 million in the last four years to build capabilities to make it an R&D led, vertically integrated global pharma company. One of the fastest-growing pharma companies, APL had recorded total sales of about Rs 1190.38 crore during 2002-03, an increase of about 21 % from 1999-2000, when the company started restructuring its API/formulations units. The profit after tax amounted to Rs 103.14 crore (20% up) and the exports stood at Rs 563.75 crore, an increase of 27 per cent. The turnover would have been much higher, but for the fact that most of the units were undergoing restructuring work. Now since all the units are back in operation, the company expects a much higher turnover for the current fiscal.
While the company produces 101 APIs in 10 segments -cephalosporin, SSPs, anti-virals, speciality antibiotics, pain/others, CNS, CVS, gastroenterologicals, respiratory and anti-fungals, it has a presence in fast-growing lifestyle disease drugs, anti-infective drugs and key speciality therapeutics.
The company has 10 multi-locational manufacturing hubs with cGMP and cost-effective scale of operations for both APIs and formulations. Units 1 to 3 are in China and unit 4 is at Visakhapatnam. The company has created an excellent base in China and established a number of wholly owned subsidiaries, joint ventures and representative offices at strategic locations, including US, East Europe, Brazil, Africa and Middle East.
The company has MCC approval for unit 3 ( China) and 6A and GMP approval from Brazil's ANVISA for unit 3 and unit 6A. MCA/FDA approvals and US plant approvals are expected in 2004.
Talking about the success story of APL, Lanka Srinivas said mega capacities for APIs (over 750 reactors and one of the largest reaction capacities in the world), formulations (dedicated product, specific injectables, tablets, capsules, liquids, orals facilities of over 6 lakh sq ft) and R&D ( over 260 scientists focusing on research for global generic formula-tions business) had made Aurobindo a dependable partner in API/formulations in the global market. An excellent track record of fiscal discipline and the conferment of several awards, including the one for the Best API company in India, and other measures had added to the confidence of the customers in creating a long-term relationship, he said.
The company aims at R&D based penetration into both regulated and global markets by 2005-06. To move up the value chain through R&D drive, the company plans process optimisation for semi-regulated markets, portfolio expansion to support the requirements of the customers, strategic API portfolio.
To move up from semi-regulated markets to regulated markets, the company plans further penetration in China, Brazil, Middle East, Africa and East Europe. In the semi-regulated markets the three nodal points are Brazil and China, $ 30 billion markets each, and India. And to enter the regulated markets of US and Europe the company will focus on generic/special generic formulations business. A joint venture with Medpharmex has been set up in the US to make sterile and non-sterile cephalosporin.