R&D spend at 4.4% of revenue; launches 15 products in U.S.
Drug maker Aurobindo Pharma has posted a consolidated net profit of ₹585.4 crore for the quarter ended March, a 10.8% increase over the year-earlier period’s ₹528.5 crore.
The improved performance came on better show in the U.S. and Europe formulation market, especially a 42.7% increase in the former.
Revenue from operations were ₹5,292.2 crore or 30.7% higher compared with the ₹4,049.1 crore of the year-earlier period.
Contributing to the performance were also the 37.9% uptick in the growth markets, ARV (anti retro viral) sales rising 96.2% to ₹291.5 crore and API (active pharmaceutical ingredient) sales growing 14.6% to ₹916.8 crore.
For the full fiscal, the consolidated net profit, however, declined 2.4% to ₹2,364.7 crore (₹2,423.2 crore). Revenue from operations for 2018-19 increased 18.6% to ₹19,563.6 crore (₹16,499.8 crore). Managing director N. Govindarajan said the year ended with a strong quarter on the back of formulation and API businesses registering a 35% and 15% year-on-year growth respectively.
Aurobindo Pharma, he said, had successfully completed the acquisitions of Apotex’s businesses in five European countries and branded oncology injectables from Spectrum Pharmaceuticals, USA during the quarter.
“Our near-term priorities are to integrate the acquired businesses, improve the efficiencies and achieve synergies. Steady progress on our differentiated pipeline during the year coupled with the recent acquisitions will drive the future growth,” he said.
A statement from Aurobindo Pharma said the research and development (R&D) spend at ₹231.3 crore was 4.4% of revenue. The company said during the March quarter, it launched 15 products in the U.S., including four injectables.
Aurobindo Pharma said the board of directors has approved a scheme of amalgamation under which six wholly owned subsidiaries – APL Healthcare; APL Research Centre; Aurozymes; Curepro Parenterals; Hyacinths Pharma; and Silicon Life Sciences – would be amalgamated with it. In 2018-19, Silicon Life Sciences had a turnover of about ₹106 crore while APL Healthcare had revenue of almost ₹4.60 crore.
The other four subsidiaries were shown as having nil turnover/revenue in a regulatory filing by Aurobindo Pharma.
The amalgamation would enable consolidation of activities with pooling and more efficient utilisation of their resources, greater economies of scale, reduction in overheads and other expenses and improvement in various operating parameters. The scheme would enable to consolidate the SEZ operations of Aurobindo Pharma.