Upbeat On Injectables, Aurobindo Is Hiking Capacities
Acquisition In Emerging Markets Possible
Aurobindo expects revenues from injectables to increase to $650m-$700m over the next three years as its Vizag plant gets commissioned in a year’s time. Apart from seeking organic growth, the company is keeping an eye out for acquisitions in emerging markets, though big-ticket M&A is ruled out.
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Pfizer is unlikely to tie up with Indian companies soon for manufacture of its COVID-19 vaccine as it has built capacity for the first phase. However, as discussions to supply to the COVAX facility and developing countries progress, it could evaluate such opportunities later.
Aurobindo has agreed to sell its US-based Natrol dietary supplements business at a significant premium to the $132.5m it paid in late 2014, as the Indian firm continues to drive into complex formulations in the US, including injectables and biosimilars.
As India revealed finer details of two schemes to promote bulk drug production, Mankind Pharma and Aarti Drugs spelled out a preference for chemical synthesis products - they are likely to be joined by more companies reluctant to invest in some that are fermentation-based. Whether a “plug and play” format for bulk drug parks will attract foreign investment remains to be seen.