More Stories

Informist, Tuesday, Feb. 10, 2026

 

Please click here to read all liners published on this story

--Aurobindo Pharma: Kaikinada Pen-G plant ramp-up in progress 
--CONTEXT: Aurobindo Pharma mgmt's comments in post-earnings analyst concall 
--Aurobindo Pharma: Minimum import price to boost Pen-G plant ops 
--Aurobindo Pharma: China plant to turn EBIDTA-positive in Q4 
--Aurobindo Pharma: US FDA observations on Eugia unit-III not to impact ops 
--Aurobindo Pharma: Confident of resolving Eugia-III regulatory issues 
--Aurobindo Pharma: Cautiously optimistic on future of Eugia-III facility 
--Aurobindo Pharma: Filed for 3 pdts from Vizag injectables unit with US FDA 
--Aurobindo Pharma: To file for GLP-1 products from Vizag injectables unit 
--Aurobindo Pharma:To file for very important injectable pdts from Vizag unit 
--Aurobindo Pharma: See ramp-up of Vizag injectable unit in FY27-28 
--Aurobindo Pharma: Creating deferred tax asset, rate to come down in future 
--Aurobindo Pharma: See notable contribution from biosimilar pdts from 2029 
--Aurobindo Pharma: Pen-G output cost falling, see better gross margin ahead 
--Aurobindo Pharma:Launched 9 pdts in US Q3, see similar trend every qtr FY27 
--Aurobindo Pharma: FY27 US business performance seen similar to FY26 
 

 

By Narayana Krishna and Shakshi Jain

 

HYDERABAD/NEW DELHI – Aurobindo Pharma Ltd. is optimistic about growth in its US business, supported by newly acquired units that are in the process of integration. The company's Raleigh facility recently acquired Lannett Co. units, which are in the process of integration and are expected to contribute to growth, the company said.

 

"In the US, we are entering into an important phase of growth. The Dayton facility has successfully transitioned into a commercial phase with manufacturing underway and will begin contributing revenues significantly from FY27 onwards," the company's senior management said in a post-earnings analyst conference call on Tuesday.

 

For 2026-27 (Apr-Mar), the company expects business performance in the US to be similar to FY26 and does not anticipate any negative factors to weigh in, the management said. 

 

Post market hours on Monday, Aurobindo Pharma reported a consolidated net profit of INR 9.10 billion for the December quarter, up 7.6% on year, while its revenue was up 8.4% on year at INR 86.46 billion. The company's US formulations business, which accounted for nearly 43% of the total sales, registered 2.2% on-year growth at INR 37.4 billion. The company launched nine new products during the quarter and received seven new product approvals.

 

Aurobindo Pharma's management said margins are expected to be better in the coming financial year compared to the current one, given the number of product launches lined up. Aurobindo Pharma expects product launches in FY27 to be similar to the December quarter product launch trend – nine products per quarter.  

 

Aurobindo Pharma said recent observations issued by the US Food and Drug Administration on its injectables arm Eugia Pharma Specialties Ltd.'s unit-III were procedural in nature and would not impact production or sales from the facility. 

 

"...we are cautiously optimistic about the future of this facility. But ultimately, the US FDA has to take a decision in terms of the warning letter. So, I cannot comment on what exactly they will do. But we feel confident that we will be in a position to respond. And in my view, probably like next year will be again see double digit growth with the ramp up of supplies," Aurobindo Pharma said. Eugia's unit-III is under a warning letter by the US regulator since August 2024. This is a key facility for the company's injectables business.

 

For the newly built Visakhapatnam injectables units, Aurobindo Pharma expects full scale-ramp up of production from FY27-FY28. The company has filed three new products for approval with the US FDA so far and expects to file very important products going forward, including some from Glocagon-like-Peptide-1 or GLP-1 category products. 

 

KAKINADA PEN-G PLANT

Aurobindo Pharma's management said ramping up of production at the Pencillin-G or Pen-G facility in Kakinada is progressing well. Production at the Kakinada facility was halted for some time due to a fire. The fall in raw material prices in China raised concerns on the viability of the plant, which was built with an investment of around INR 25 billion under the performance-linked incentive scheme.

 

"The ramp-up of the facilities progressing in line with the expectation and is well in the position to tailor a meaningful uplift and profitability over the time. Based on our current production level, we expect to produce more than 10,000 metric tonnes on an annualised basis," Aurobindo Pharma said. 

 

The company said the prices of Pen-G were improving gradually and might turn stable around April. It said the Kakinada plant was close to achieving break-even and had some contribution to the overall numbers. The recently announced minimum import price clause by the government is a big boost to the plant to make it more viable. The management said the production cost of Pen-G is falling and the gross margins on this product are likely to improve going ahead.

 

Aurobindo Pharma said it expects 2029 to be an inflection year for its biosimilar business, as several products are expected to hit markets, including Europe and growth markets like Canada and Brazil.

 

It said the tax rate is currently high due to ramping up of some facilities. However, the company is not taking credit for the losses it is incurring on research and development and other costs, the management said, adding that the tax rate may come down going forward.

 

"So, we are not taking the tax credit. Once they start making profit, we'll take that tax credit with a retrospective effect. So that is the reason why you are saying a higher tax rate," the management said.

 

Aurobindo Pharma's management said its facility in China was progressing steadily in terms of production to reach annual capacity of 2 billion units a year. The company has received 10 new product approvals in China and expects the unit to turn profitable in Jan-Mar.

 

At 1027 IST, shares of the company were at INR 1,198 on the National Stock Exchange, down 0.5%.  End

 

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

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.