Aurobindo Pharma to Launch China Plant in Q3 FY25

Aurobindo Pharma, a Hyderabad-based pharmaceutical player, stated that it is set to begin production at its new China facility in the upcoming quarter. According to the company’s Chief Financial Officer, Santhanam Subramanian, full-scale operations are expected in the next fiscal year.

The plant, located in China, is anticipated to commence a small volume rollout between November and December 2024, with an increase in production capacity projected for the January to March quarter of 2025.

In an analyst call, Subramanian noted that the company’s China plant is slated for commercialisation in Q3 FY25, with a significant ramp-up expected in Q4 FY25. Full-fledged production is expected to be achieved by FY26. The facility’s initial output will be modest, with the potential for significant revenue growth in the coming years, driven by filings for both the Chinese and U.S. markets.

Additionally, Aurobindo Pharma is making progress on the large-scale commercialisation of Penicillin-G (Pen-G), a crucial antibiotic. The company plans to ramp up production at its ₹2,400 crore Pen-G plant in Andhra Pradesh from October 2024. The plant, approved under the Production-Linked Incentive (PLI) Scheme aimed at promoting domestic manufacturing of critical key starting materials, drug intermediates, and active pharmaceutical ingredients (APIs), will have an annual production capacity of approximately 15,000 tonnes.

Subramanian also discussed the company’s outlook for its U.S. business, stating that Aurobindo expects the current pricing environment in the U.S. market to persist. Meanwhile, growth in Europe and other emerging markets is expected to continue, contributing to the company’s overall positive momentum.

Aurobindo Pharma remains confident in achieving its internal EBITDA margin target of 21-22% for the current fiscal year. In the April-June quarter of FY25, the company reported a substantial 61% year-on-year increase in consolidated net profit, amounting to ₹919 crore. Revenue from operations during this period stood at ₹7,567 crore, reflecting the company’s strong performance and growth trajectory.

About Aurobindo Pharma

Aurobindo Pharma is mainly involved in the manufacturing and marketing of active pharmaceutical ingredients (API), generic pharmaceuticals and related services.

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