Aurobindo shares more than double
NEW DELHI : Aurobindo Pharma Ltd saw its stock prices more than double during the last few months, from 52-week lows of ₹397.20 on the National Stock Exchange on 3 February to 52-week highs of ₹887.70 on 14 August. The turnaround in the company’s prospects has been aided by an improved outlook for its US formulations business, which contributes almost half of the company’s overall revenues. The base business in the US remains stable helped by lower competitive intensity.
The product pipeline remains strong and new product launches in the injectables segment are picking up pace. The successful completion of inspections of its various facilities by the US drug regulator (USFDA) recently also added to confidence about new launches. The European operations, which is the second largest contributor to the company’s overall revenues and contribute more than a fourth to them, are expected to see improved growth trajectory helped by new launches and better reach, feel analysts.
“With the current favourable macro-economic environment and broad portfolio offerings by Aurobindo, we believe it is well placed to capitalize on the opportunity related to US generics," said analysts at Motilal Oswal Financial Services Ltd. The better margins of European segment further support overall profitability, they added. The company’s Q1 performance held testimony.
The company’s revenue growth of 10% year-on-year was supported by the US formulations growth of 11.2% year-on-year and 18.6% y-o-y growth in European business, despite some decline in ARV (anti-retroviral drugs used for HIV treatment) sales. Supplies of ARV products being tender linked remain lumpy and have lower margins, said analysts. The company launched 15 products during Q1
. Read more on livemint.com
