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Informist, Thursday, Aug. 6, 2026

 

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--Aurobindo Pharma: Started shipments to Europe from China plant 
--Aurobindo Pharma: Plans to launch asthma drug Advair in the US in Aug 
--Aurobindo Pharma: Filing for govt incentives for Kakinada Pen-G plant 
--Aurobindo Pharma: Expecting Pen-G plant incentives payout Sept-Mar 
--Aurobindo Pharma: Q1 US sales up 5% on year excluding Revlimid 
--Aurobindo Pharma: Acquired US co Lannett to bid for more govt contracts 
--Aurobindo Pharma: Have a 12-month plan to integrate Lannett business
--CONTEXT: Comments by Aurobindo Pharma mgmt in post-earnings analyst concall 
--Aurobindo Pharma: Lannett utilisation at 40% now, aim to enhance in 12 mos 
--Aurobindo Pharma: See stable revenue from biologics unit-1 from FY28 
--Aurobindo Pharma: Arm Eugia FY27 revenues expected to be $500 mln 
--Aurobindo Pharma: Lack of new approvals to impact arm Eugia revenue growth 
--CONTEXT: Aurobindo Pharma arm Eugia Pharma faces US FDA scrutiny 
--Aurobindo Pharma: Want arm TheraNym to enter into commercial supply chain 
--Aurobindo Pharma: See R&D expenditure at INR 14 bln-INR 15 bln for FY27

 

By Narayana Krishna and Shruti Nair

 

HYDERABAD/MUMBAI – Aurobindo Pharma Ltd. is expecting its injectables business subsidiary Eugia Pharma Specialties Ltd.'s revenue for 2026-27 (Apr-Mar) to be around $500 million, the company's management said in a post-earnings analysts conference call. Lack of new product approvals from the company's key manufacturing facility Unit-III is impacting Eugia Pharma's revenue growth, the company said.

 

The company's management had earlier guided for a $600 million-$700 million annual revenue run rate from the injectables business. However, ongoing regulatory scrutiny by the US Food and Drug Administration on the facility is impacting new approvals. The Unit-III had received a warning letter earlier and a re-inspection conducted in February concluded with 11 observations. Further, the unit was assigned a fresh Official Action Indicated tag by the US FDA. The management said the company is engaging with consultants to resolve the issues.

 

Late Wednesday, Aurobindo Pharma reported its Apr-Jun earnings. The company's consolidated net profit rose over 25% to INR 10.33 billion from INR 8.25 billion a year ago. Analysts had estimated the net profit at INR 9.78 billion. Revenue from operations increased over 16% to INR 91.50 billion, compared with INR 78.68 billion a year earlier, surpassing the Street's expectation of INR 89.25 billion.

Aurobindo Pharma's management said the company's shipments from China to Europe have increased. The company is also starting supplies to the US. As a strategy, the company is focused on growth markets such as China, Canada, and Indonesia to drive the growth.

The company's management said its contract manufacturing organisation pact with Merck Sharp & Dohme is on track to achieve its goals. In May, Aurobindo Pharma, through its arm TheraNym Biologics Pvt. Ltd. signed a contact manufacturing agreement to manufacture some key products.

The company is expecting steady revenue from this contract from FY28 onwards. TheraNym dedicated its unit – I to the Merck project. "The validation batches for the customer (Merck) for the anchor product in Unit-1 of TheraNym are scheduled in 2027, after which the customer will file the product from the site in the target markets. So I expect steady revenue stream beginning 2028 as I anticipate some stockpiling requirements to be paid ahead of the launch for the customer," Aurobindo Pharma management said. The company is expecting some milestone payments, too, on this project.  

"So by 2027, when we conclude our validation batches, we do our engineering and validation batches, there will be a flow of revenues. But I see a steady state revenue flow to happen once the customer starts to stockpile the product. And to be honest, I see that to be from 2028," the company said.

The company expects to commission the TheraNym unit-II by 2029 and expects to begin construction on the unit by October. The company plans to use this facility to cater to commercial projects from global markets. 

 

Aurobindo Pharma's management is confident of driving growth in its key US market. The company is planning to launch generic Advair any time in August, while having a healthy pipeline of products for the US launch. For the June quarter, Aurobindo Pharma reported a 5% on-quarter growth in its US sales, excluding generic Revlimid.

The company said its acquired US company Lannett Co. is expected to contribute significantly to the overall growth going forward. The company has drawn a 12-month integration plan to improve the performance of Lannett, the management said. The company expects new business through the acquired Lannett, which includes an opportunity to bid for government supply projects in the US where it has a manufacturing base.

 

The existing products of Lannett are also "crown jewels" and expected to add to the overall growth, the company said. The areas like supply of control substances may help the company to capture new business in the US, the company said. The company is planning to ramp up the utilisation of Lannett facility significantly in the next 12 months, which has utilised at 40% of its capacity so far.

On its Penicillin-G manufacturing plant, Aurobindo Pharma management said the plant is producing 800 tonnes to 900 tonnes, which is mostly used to meet domestic market requirements. The company started filing for incentives from the government under Production-Linked Incentives Scheme and expects payouts under the scheme may begin during Sept-Mar. 

Aurobindo Pharma has integrated the manufacturing facility in Kakinada to make Penicillin-G-based products with an investment of INR 25 billion. The unit was created under PLI scheme to reduce the import dependency of select pharmaceutical products.

Aurobindo Pharma said its spending on research and development for FY27 will be around INR 14 billion to INR 15 billion. At 1053 IST, shares of Aurobindo Pharma were trading nearly 1% lower at INR 1,598 on the National Stock Exchange.  End

 

US$1 = INR 95.17

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

 

Edited by Deepshikha Bhardwaj

 

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