Companies

Despite political tensions, Aurobindo Pharma bullish on business in China

G Naga Sridhar Hyderabad | Updated on June 22, 2020

An Aurobindo Pharma Ltd production facility   -  Bloomberg

Drugmaker begins filing products from India for the Chinese market

Aurobindo Pharma Ltd has commenced filing products in China from India and appears to be bullish on business prospects, going forward, notwithstanding recent tension in bilateral relations between the two nations.

The company has already starting filing products from India for the Chinese market, according to its Managing Director, N Govindarajan.

He was responding to a question on whether the present geopolitical realities between India and China had any impact on the business plans of the Hyderabad-based company in China, in the recent earnings call.

The over $3-billion revenue company is making investments in China. “The construction of our oral formulation manufacturing facility is going on and we expect to take the exhibit batches by the second half of FY2021,’’ Govindarajan said.

Though the products from the Chinese plant may be used for Europe and the US to an extent for a period of time, the drugmaker plans to use it only for the China market after a certain period.

The company has two plants in China — an oral medicine plant and a joint venture.

Aurobindo is also looking at its private business in addition to its joint venture business in China, which it had signed one-and-a-half years back.

It had witnessed certain price correction in terms of the set of products in the tender business. “We will get more clarity as we get closer to the launch. But we are not restricting ourselves only for tender business we will also look at the private business as well as we progress,’’ the executive said.

In the wake of some changes in regulation in China, there is a preference for FDA approved product and FDA inspected facility in China.

“The pricing in the other segments other than tender is also attractive for us to move ahead. But in terms of specifics, we will have more clarity as we go closer to the filing and launch,’’ Govindarajan added.

Published on June 22, 2020

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