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Aurobindo Pharma is expecting a significant jump in revenue from injectables (drugs taken via injection), starting from the present quarter.
This growth will be driven by a shortage of injectables in the US market and also new products set to be launched, according to Ronald Quadrel, President of Aurobindo’s US arm, AuroMedics Pharma.
“We will see a significant jump in the revenues over the next year. One of the products on the Food and Drug Administration’s shortage list was just approved and we are about to launch Acyclovir,” Quadrel said at the third-quarter earnings conference call recently.
Some products, already filed for approvals, were about a year away from approvals. Already, it had launched Bupivacaine, Lidocaine and Ondansetron. “In all, currently, we have four approved products that are on the shortage list,” he said.
Aurobindo had already filed Abbreviated New Drug Applications (ANDAs) for another 11 products, which are currently on the shortage list.
On the price advantage for already launched products, he said due to the presence of a couple of competitors in the market, the prices did not move up despite shortage. Towards the last two weeks of the third quarter and beginning of the fourth quarter, there was some uptake in sales. “We will appreciably see more during the next fiscal year,” he added.
Aurobindo believes there are lots of volume-drivers for the US business, including the growing generic usage. It sees opportunity for increased business in some products such as Duloxetine and the injectables. In the quarter ended December 31, 2013, the US formulations sale grew 81 per cent over the previous year. Its net profit increased three-fold to ₹417 crore, while revenue grew 36 per cent to ₹2,140 crore (₹1,570 crore).
Actavis buyWith the acquisition of Actavis’ business in seven countries in Europe last year, Aurobindo would get about 1,200 products, and is planning to launch 200 more between 2014 and 2015. The manufacturing of the products would be shifted to India only if there is a cost advantage.
The company had already done some exercise with Actavis on shifting product mix and getting into the profitable tender business and is hopeful of expansion of margins.
Aurobindo’s scrip gained 6.93 per cent on the BSE to close at ₹517 on Tuesday.
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