Aurobindo Pharma Ltd

Analysis

Business Description

Aurobindo Pharma Ltd (Aurobindo) is a global pharmaceutical company that produces generic formulations, active pharmaceutical ingredients (APIs) and specialty products. The company’s product portfolio is spread over seven key therapeutic areas, including antibiotics, antiretrovirals (ARVs), cardiovascular, central nervous systems (CNS), anti-diabetics, gastroenterologicals and antiallergics. It offers a broad portfolio of diversified dosage forms, including prescription and OTC oral solids and liquids, specialty products such as ophthalmics, injectables and controlled substances in generic formulations. The company also provides customer centric project-based chemistry services and stability study activities through AuroSource; novel slutions from discovery to development and commercialization to cost-effective drug development and manufacturing through Auro Peptides Ltd; and biocatalysts for use in the pharmaceutical and chemical Industries through AuroZymes. The company operates through a single reportable segment. However, its business operations consist of manufacturing and selling US Formulations, EU Formulations, Growth Markets Formulations, ARV formulations and API business segment.

It markets products and solutions in more than 150 countries. The company has several manufacturing facilities for APIs-oral and sterile, drug intermediates and formulations. It operates 11 units for APIs/intermediates and 15 units, including 10 in India, 3 in the US and 1 each in Portugal and Brazil) for formulations.

R&D Overview

The company’s R&D team focuses on developing complex formulations, niche oral, sterile, biosimilars, specialty injectable products, APIs and peptide based drugs. Product pipeline spans across oncology and Immunology. It employs more than 1560 scientists and analysts in product development - It had more than 79 products under development in oncology and hormones, followed by 15 biosimilars, three depot injections, one vaccine, topicals (33), transdermal patches (9), inhalers (8) and nasals (9). - It has five R&D centers in Hyderabad, India; and one R&D center each in Dayton, New Jersey; Raleigh, North Carolina; Pearl River, New York. It also has 27 state-of-the-art manufacturing and packaging facilities which are approved by regulatory agencies such as USFDA, EU GMP, South Africa-MCC, UK MHRA, Health Canada, Brazil ANVISA and WHO. In FY2021, Aurobindo launched 53 products, including 21 injectables in the US; received approvals for 42 ANDAs, including 17 injectables. As on March 2021, the Company filed 639 ANDAs in total of which 439 have received final approvals and 29 have got tentative approvals which includes eight ANDAs that are tentatively approved under the US President’s Emergency Plan for AIDS Relief (PEPFAR) and 171 ANDAs which are currently under review. The company also had 252US DMFs filings and 3,264 filings for other global markets across therapeutic segments.

Business Segments
Overview

Aurobindo is a vertically integrated company with approximately 70% of its API requirement met in-house. It is one of the leading API manufacturing companies globally. The segment has presence across beta lactams and non-beta lactams and provides both sterile and non-sterile penicillin and cephalosporins with penams.

- Major customers include innovator and large generic companies.

Key Stats

- As of FY2021, the company applied for 252 US DMFs and 3264 filings in other countries.

Performance

Reported revenue of INR30,859.0 million for FY2021, which grew 0.1% YoY (2021 vs 2020), and recorded negative growth of 4.8% during 2019-21.

The segment accounted for 12.5% of the company's revenue in FY2021.

Inventore veritatis
Overview

Offers antiretroviral medicines in various growth markets through participation in worldwide tenders floated by various international bodies.

Key Stats

- Supplies ARV’s to approximately 3 million HIV patients spread over 125 countries.

- Filed over 1,100 ARV dossiers for registrations across the world.

Performance

Reported revenue of INR18,628.0 million for FY2021, which grew 48.8% YoY (2021 vs 2020), and recorded a CAGR of 38.4% during 2019-21.

The segment accounted for 7.5% of the company's revenue in FY2021.

Overview

Manufactures and sells generic formulations in Europe. Views acquisitions as a major growth driver for the segment.

Performance

Reported revenue of INR60,608.0 million for FY2021, which grew 2.3% YoY (2021 vs 2020), and recorded a CAGR of 10.5% during 2019-21.

The segment accounted for 24.5% of the company's revenue in FY2021.

Overview

Manufactures and sells generic formulations in Latin America, Canada, South Africa and East Africa. - Operates eight key formulation facilities in India and one facility in Brazil.

Performance

Reported revenue of INR14,379.0 million for FY2021, which grew 6.1% YoY (2021 vs 2020), and recorded a CAGR of 9.8% during 2019-21.

The segment accounted for 5.7% of the company's revenue in FY2021.

Overview

Manufactures and sells generic formulations in the US. It offers non-penicillin’s and non-cephalosporin products.

- Operates one manufacturing facilities in the US Views product innovation as a critical growth driver for the segment.

In line with this approach, for the FY2021, the company launched 53 products including 21 injectable products.

Key Stats

- As of March 2021, the company filed 639 ANDAs with USFDA and received approval for 439 ANDAs

- Revenue Mix (in FY2021): Orals (67%), Injectables (15%), Branded Oncology (6%), Dietary Supplements (9%) and OTC (3%).

Performance

Reported revenue of INR123,245.0 million for FY2021, which grew 7.3% YoY (2021 vs 2020), and recorded a CAGR of 16.8% during 2019-21.

The segment accounted for 49.8% of the company's revenue in FY2021.

Geographical Segments
Performance

Reported revenue of INR81,221.6 million for FY2021, which grew 11.6% YoY, and recorded a CAGR of 15.3% during 2019-21. Europe accounted for 32.8% of the company's revenue in FY2021.

Inventore veritatis
Performance

Reported revenue of INR20,138.1 million for FY2021, which decreased 10.2% YoY, and recorded negative growth of 6.7% during 2019-21. India accounted for 8.1% of the company's revenue in FY2021.

Performance

Reported revenue of INR25,211.6 million for FY2021, which grew 32.6% YoY, and recorded a CAGR of 17.7% during 2019-21. Rest of the World accounted for 10.2% of the company's revenue in FY2021.

Performance

Reported revenue of INR121,174.9 million for FY2021, which grew 3.8% YoY, and recorded a CAGR of 14.0% during 2019-21. USA accounted for 48.9% of the company's revenue in FY2021.