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Informist, Tuesday, Aug. 5, 2025

 

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-- Aurobindo Pharma: US base business resilient, strong 
-- Aurobindo Pharma: Weak sales of generic Revlimid hit Apr-Jun US sales
-- Aurobindo Pharma: US injectables business revenue up 11% YoY in US 
-- Aurobindo Pharma: Europe ops revenue to touch 1 bln euros by FY26 end 
-- CONTEXT: Comments by Aurobindo Pharma mgmt in post-earnings analyst call 
-- Aurobindo Pharma: Net Apr-Jun capex $73 mln to up capacity 
-- Aurobindo Pharma: Net cash position as on Jun 30 was $140 mln 
-- Aurobindo Pharma: See FY26 EBITDA margin at 20-21% 
-- Aurobindo Pharma: Revenue from China ops to begin FY26 
-- Aurobindo Pharma: Arm Eugia plans to file 20 new pdts in US in next 3 yrs 
-- Aurobindo Pharma: Will continue Revlimid production post patent expiry 
-- Aurobindo Pharma: Not expecting large revenue from Revlimid in FY26 
-- Aurobindo Pharma: Acquired Lannett's products similar to co's portfolio 
-- Aurobindo Pharma: Production at Penicillin-G plant at Kakinada improving 
-- Aurobindo Pharma: Demand for oncology injectables exceeds Europe capacity 
-- Aurobindo Pharma: Planning 2 more oncology product mfg lines in Europe 

 

By P. Madhu Kumar and Narayana Krishna

 

MUMBAI/HYDERABAD – Aurbindo Pharma Ltd. said its US business remained resilient and they see no decline in the demand in the US for its base business, despite uncertainties around US tariffs throughout the June quarter, the company's management said in a post-earnings conference call Tuesday. The company said demand in the US stayed strong as wholesalers and suppliers must have stocked up and are now winding down, as a result, good volumes were seen despite a non-seasonal quarter.

 

Aurobindo Pharma's management also said the injectables business revenue grew 11% on year in the US and acquisition of Lannett Co. in the US will help the company's growth in the region.

 

The management said weak sales of generic Revlimid hit Apr-Jun US sales and don't expect more revenue from the drug as they are "completely sold out" in the segment. The company's turnover from active pharmaceutical ingredients declined due to pricing pressures as imports and domestic production shot up disproportionately. However, the management was optimistic on its growth in these segments by the end of FY26 and added that the entire market will open up in Jan-Mar and Revlimid sales are poised to increase as a generic product.

 

 

Aurobindo Pharma said it will continue with the production of Revlimid after the expiry of patent 2026 and the product may become a common generic. The company said its wholly-integrated subsidiary Eugia Pharma Specialities plans to file 20 new products in the US and Europe in the next three years. 

 

Talking about growth in various regions across the globe, the company said its Europe business is expected to grow strong and expects to achieve a target of 1 billion euros (around $1.15 billion) by the end of 2025-26 (Apr-Mar). "Approvals have started coming in from European Union for biosimilars and we expect revenue to start from Q3 and Q4 of FY26," the company's management said, adding that $145 million has already been invested in its China facility, which will start production from the last quarter of FY26. 

 

The company reported a net cash position of $140 million as of Jun. 30. Net capital expenditure for Apr-Jun stood at $73 million, in line with its strategic plans to expand manufacturing capacity and enhance compliance and automation. The management sees its earnings before interest, taxes, depreciation and amortisation margin guidance at 20–21% for FY26, compared with 20.4% recorded in the June quarter.

 

When asked about the company's Penicillin-G plant in Andhra Pradesh, the management said production at its Kakinada Pen-G facility was improving and the yield are also growing. They expressed confidence that the plant will perform well over the next two months, with the progress likely to be reflected in the December quarter results. Operations at the facility had been halted for 20–25 days following a fire incident on Apr. 27.

 

Regarding its acquisition plans, the company said the recently announced acquisition of Lannett Company Inc. is still subject to approval from the Federal Trade Commission and a lot of back and forth is expected in the process, as a result they have given "nine months as a matter of abundant caution".  

 

In terms of the company's business in Europe, "the demand for oncology injectables in Europe exceeded our production and supply in the region," the company's management said. The company is now planning to open two more oncology product manufacturing lines for the European region to meet the demand, it added. At 1212 IST, shares of the company were 2.3% lower at INR 1,065 on the National Stock Exchange. End

 

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

 

Edited by Subhojit Sarkar

 

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