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Informist, Tuesday, May 27, 2025

 

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--Aurobindo Pharma: Biosimilar ops hold $250 mln-$300 mln revenue potential
--Aurobindo Pharma: Expect inflection point in biosimilars business in FY28
--Aurobindo Pharma:Cash flows are good, board may consider buyback, dividend
--Aurobindo Pharma:To file 15 new injectable pdts in Europe from Vizag plant
--Aurobindo Pharma: Arm Eugia's Vizag plant to contribute to sales FY27
--Aurobindo Pharma: To file 10 new injectable pdts in US from Vizag plant
--Aurobindo Pharma: Cumulative invest on biosimilars $400 mln as on Mar 31
--Aurobindo Pharma: Europe, emerging markets to aid FY26 revenue growth
--Aurobindo Pharma: Good product launches lined up by Eugia for FY27
--Aurobindo Pharma: Expect arm Eugia to report growth in FY27
--Aurobindo Pharma: Expect injectables ops to normalise in Apr-Jun
--Aurobindo Pharma: China plant booked loss of over INR 350 mln in FY25
--Aurobindo Pharma: New plant at Dayton in US to commence ops Jul-Sept
--Aurobindo Pharma: Net cash $42 mln as on Mar. 31 vs $84-mln debt a yr ago
--CONTEXT: Aurobindo Pharma FY25 EBITDA margin 20.8%
--Aurobindo Pharma:Confident of maintaining current EBITDA margin levels FY26
--Aurobindo Pharma: Expect high single-digit revenue growth in FY26
--Aurobindo Pharma: Working with partner to develop respiratory pdts
--Aurobindo Pharma: To focus on respiratory pdts to drive future growth
--CONTEXT: Comments by Aurobindo Pharma's mgmt in post-earnings analyst call
--Aurobindo Pharma: US growth led by volume growth in key pdts Jan-Mar

 

By Narayana Krishna and P. Madhu Kumar

 

HYDERABAD/MUMBAI – Aurobindo Pharma Ltd. is expecting high single-digit growth in its revenue for 2025-26 (Apr-Mar) aided by Europe and emerging markets, the company's management said in a post-earnings analyst call on Tuesday.

 

For the March quarter, the company reported 13.5% on-year growth in its sales in the US, the largest generic market in the world, to INR 40.7 billion. This growth was primarily led by volume growth in existing products, Aurobindo Pharma said. The company does not expect significant change in its sales in the US in the current financial year due to lack of large product launches. 

 

However, the company is expecting momentum in the US sales from FY27 onwards, as its injectable arm Eugia Pharma Specialties Ltd. is lining up several product launches, the management said. The contribution from sales of generic cancer drug Revlimid in the US is likely to be lower in FY26 compared to FY25, the company said.

 

For FY25, Aurobindo Pharma reported a net profit of INR 34.86 billion, up nearly 10% on year. Its consolidated revenue from operations grew just over 9% on year to INR 317.24 billion. For Jan-Mar, the company reported a consolidated net profit of INR 9.03 billion, down nearly a percent on year but up almost 7% sequentially. Analysts had expected the company to report a consolidated net profit of INR 10.26 billion. Its consolidated revenue rose nearly 11% on year and over 5% sequentially to INR 83.82 billion, higher than the INR 82.48 billion expected by analysts.

 

Aurobindo Pharma's management said over INR 1.05 billion expenses related to fuel costs and inventory impacted the March quarter net profit.

 

While projecting high single-digit revenue growth, the company also gave an outlook of maintaining its earnings before interest, tax, depreciation and amortisation margins in FY26 at the FY25 level, which was at 20.8%.

 

Aurobindo Pharma's management said operations at Eugia Pharma injectables plant will normalise in Apr-Jun, though the company is yet to get the full clearance from the US Food and Drug Administration. The US regulator in August had issued a warning letter on the Eugia's unit-III and the company is in the process of completing its remedial process.

 

The company said Eugia Pharma may see significant growth from FY27 onwards led by good product launches. The company will also increase filing the new injectable product applications for approval, targeting 10 new product filings in the US and 15 in Europe in FY26 from its Visakhapatnam plant. This plant is expected to contribute to the revenue from FY27 onwards. 

 

Aurobindo Pharma's management said it is focused on a product portfolio in the respiratory segment. The company said it has tied up with a globally known partner to develop several products in the respiratory segment, which has high growth potential.

 

BIOSIMILARS

Aurobindo Pharma is betting big on biosimilars and has so far invested nearly $400 million on a cumulative basis as of Mar. 31, the management said. The company is expecting at least seven new products in the market by FY28 and the potential of its current products has a revenue potential of $250 million-$300 million. The company said this segment will see an inflection in FY28 onwards.

 

BUYBACK – DIVIDEND

Aurobindo Pharma said the company has healthy cash flows and a $42 million cash surplus as on Mar. 31 against a net debt of $84 million a year ago. Responding to a question, the management said the company's board may consider a share buyback or a dividend payout to its shareholders, given that the current cash flows are enough for such a decision. However, the management has not given any specifics of these plans.

 

Aurobindo Pharma said its China plant has incurred a loss of INR 350 million in FY25 due to initial operating costs. However, it expects the plant to turn profitable FY27 onwards with new product launches. The company is expecting clarity on China operations profitability, once the new tariffs come in around July. The company also expects its plant in Dayton, US, to begin commercial operations from Jul-Sept.

 

At 1038 IST, shares of Aurobindo Pharma traded at INR 1,195.30 on the National Stock Exchange, up 1.2% from its previous close.  End

 

US$1 = INR 85.30

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

 

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