The Hyderabad-based Aurobindo Pharma Ltd, the largest active pharmaceutical ingredients (API) manufacturer in Asia, is set to commission the first phase of its formulation facility, located in Hyderabad, by December 2008.

According to the company sources, the facility, which will be operational in two phases, involves a total investment of US$45 million. In the first phase the company is investing US $20 million and in the next phase it will invest $25 million. The setting up of a formulation facility, which is as per the major international regulatory standards, in an area of 75 acres in a special economic zone (SEZ) is with a view to become one among the top 15 global generic players by 2015.

The facility, which is expected to commence commercial production by 2010, will cater to the European Union generic opportunities. Aurobindo, which is aiming to become a US$1 billion company, intends to generate more than 60 per cent of its revenue from generic formulations, which now contributes 35 per cent to its turnover, and 50 per cent from API business, now the segment contributes 65 per cent to the turnover, by March 2010. The new formulation facility is especially meant for the pipeline products. The company, with major focus on niche products, is planning to fully utilise the existing formulation capacity over the next couple of years.

It is also learnt that the company, which has acquired Pharmacin in Netheralands and Milpharm in the UK and is in the process of setting up a facility in Malta, is looking at other acquisitions in the Europe, primarily in the marketing set up with a view to exploit opportunities in markets such as Italy, Spain, Portugal and Western Europe.

Aurobindo is also considering the strengthening of its generic presence in other key regulated markets such as Africa and Russia, Canada Australia and Japan as well emerging South Asian markets. The company, which has filed 125 abbreviated new drug applications (ANDAs), has got approval for 65 products, is planning to launch 40 more products in the US market by the end of current fiscal year.