Aurobindo Pharma not expecting meaningful launches from arm Eugia in 1 yr
This story was originally published at 12:14 IST on 11 November 2024
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--Aurobindo Pharma: Don't expect meaningful launches from Eugia in next 1 yr
--Aurobindo Pharma: Ops at injectable arm Eugia unit-III to normalise by Mar
--Aurobindo Pharma: Eugia-III supply issues may impact Oct-Dec injectable ops
--CONTEXT: Aurobindo Pharma arm Eugia Pharma facing US regulatory scrutiny
--Aurobindo Pharma: Remedial measures at Eugia-III unit completed
--Aurobindo Pharma: May invite US FDA for fresh Eugia audit by Oct-Dec FY26
--Aurobindo Pharma: Eugia Pharma FY25 sales seen nearly $600 mln
--Aurobindo Pharma: US injectables impacted by supply challenges Jul-Sept
--Aurobindo Pharma: US injectables sales down 11% YoY to $81 mln Jul-Sept
--Aurobindo Pharma: Eugia-III corrective steps hit US injectable ops Jul-Sept
By Narayana Krishna
HYDERABAD - Aurobindo Pharma Ltd. today said it is not expecting any "meaningful launches" in the next 6–12 months from its injectables business arm, Eugia Pharma Specialties Ltd., as it is in the process of normalising its operations after key revenue generator Unit-III received a warning letter from the US Food and Drug Administration in August. In a post-earnings conference call Monday, the company's management said the remedial measures at Eugia’s Unit-III are complete, and the company is ramping up its products gradually.
"Price erosion in the injectables business is in low single digits. That has been the trend for the last few quarters, and launches are a bit low this year (2024-25). But we expect things to ramp up from H2 (Oct-Mar) onwards. However, there are no meaningful launches in the next six months to one year," said P. Yugandhar, chief executive officer of Eugia Pharma.
For Jul–Sept, Aurobindo Pharma's injectable arm's overall sales were at $102 million, with US injectables sales at $81 million, a decline of 11% year-on-year. For FY25, the company is expecting to clock total injectable sales of around $600 million. The fall in US injectables sales for Jul–Sept was primarily due to lower supplies from Eugia Unit-III, the company said. Injectables account for nearly 24% of Aurobindo Pharma's total sales.
Eugia Pharma’s Unit-III, the key revenue generator for its injectables business, received a warning letter from the US FDA in August, affecting the company’s ability to supply products at full capacity. "For the next 6–12 months, it will be more about supplying from our existing molecules," he said, adding that new launches and filings will depend on how regulatory matters pan out for the company.
The company management said that while overall supply chain issues may have an impact during the Oct–Dec quarter, too, it is expecting improvement by March. The company said that starting from Apr–Jun of this fiscal year, Eugia has been improving its supplies from Unit-III each quarter, and this trend will continue. While remedial measures have been completed, the company is expecting a fresh audit of Eugia Unit-III by Oct–Dec of FY26, it added.
Aurobindo Pharma had postponed its plans to unlock value by divesting some stake in Eugia Pharma to investors due to regulatory issues. At 1035 IST, shares of Aurobindo Pharma were trading at INR 1,316.75 on the National Stock Exchange, down 0.84% from its previous close. End
US$1 = INR 84.38
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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