Aurobindo Pharma—Chairman voted 35th most influential pharma person in the world

Aurobindo Pharma was established in 1986 by P V Ramprasad Reddy and K Nityananda Reddy. Its initial product basket comprised semi synthetic penicillin bulk actives (BPC), namely ampicillin, trihydrade and amoxycillin trihydrade at its Pondichery facility. In the past 22 years, this Hyderabad-based company has grown by leaps and bounds, as proved by a survey conducted by The World Pharmaceutical Frontiers, in which the current Chairman, Ramprasad Reddy, was placed 35th among the 40 most influential pharma people in the world. This is a sure sign of the company's increasing visibility in global markets.

Global facilities

Aurobindo manufactures generic pharmaceuticals and Active Pharmaceutical Ingredients (APIs). It has 14 manufacturing facilities, 10 in India, one in China, two in the USA and one in Brazil. Aurobindo's four facilities for formulations and five facilities for bulk actives and are approved by key regulatory authorities such as US Food and Drug Administration (FDA), UK-Medicines and Healthcare products Regulatory Agency (MHRA), World Health Organization (WHO), Medicines Control Council of South-Africa (MCC-SA) and National Health Surveillance Agency (ANVISA)-Brazil.

Product basket

The company is the market leader in anti-infectives segment and currently has more than 300 products at different stages of completion. The company's robust product portfolio is spread over six major therapeutic areas: anti-retrovirals (ARVs), cardiovasculars (CVS), central nervous system (CNS), gastroenterologicals, anti-allergics and anti-infectives. The company has been marketing these products globally, in over 100 countries. It has a strong R&D base, which has contributed about 2300 product filings world wide. The company's manufacturing plant at Bolaram is engaged in manufacturing semi synthetic penicillins (SSPs) while units at Pashamylaram and Kukatpally manufacture drug intermediates and quinolones and formulations respectively. The units at Chitkul are engaged in the manufacture of sterile cephalosporins while the unit at Pashamylaram manufactures cephalosporins. In bulk actives, the company manufactures and exports a wide range of semi-synthetic penicillin antibiotics both oral and sterile while in drug intermediates the company manufactures and exports CMIC Chloride and various 4-methyl peperidone derivatives. It also manufactures a wide range of sterile bulk drugs (lyophilised and crystalline). Currently, it employs more than 6000 people globally.

The company's spokesperson reveals that, "During the current fiscal, the company has launched 34 new products in the US market and is continuously expanding its product portfolio in the same. It has an international presence in more than 65 countries and its exports contribute almost 63 percent. It has 30 subsidiaries across the globe. During 2006-07, Aurobindo Tongling (Datong) Pharmaceutical Company, China ceased to be a subsidiary and Aurobindo (H K), Hong Kong was wound up."

Non-infringing IP generation

It is the second largest globally Drug Master Files (DMFs) filing company after Teva Pharmaceuticals and the largest from India to have one of the largest R&D setups in India with three research centres, covering 16,000 sq feet, manned by 700 scientists including 40 PhDs. The company is associated with the United Nations Organisation, (UNO) for development of paediatric ARV formulations and has developed six dose combinations for ARVs. Its R&D strengths are in developing intellectual property (IP) in the area of non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo is developing new drug delivery systems (NDDS), new dosage formulations, applying new technology for better processes. Aurobindo has invested significant resources in building a mega infrastructure for formulations and bulk actives to emerge as a vertically integrated pharmaceutical company. Besides having the highest number of DMFs from India and the second largest globally, it has also been aggressive in its Abbreviated New Drug Applications (ANDA) filings in lifestyle disease drugs and sterile and non-sterile cephalosporins having substantial entry barriers, with more than 125 ANDAs filed over a span of three years. So far company has filed over 1000 DMFs and around 400 formulation dossiers across the world. In US of the 128 ANDAs filed, it has received 49 final regulatory approvals and 18 tentative nods.

Business strategy

Aurobindo offers custom synthesis solutions that cater to outsourcing needs of customers, specifically in two key areas: Organic Custom Synthesis and Chemical Development. Strong management team, on time delivery, strong R&D base, broad product portfolio, strong manufacturing infrastructure, customer centricity all supported Aurobindo to consolidate its position in the growing pharma industry. With an investment of about $ 500 million over the last five years in regulatory manufacturing infrastructure and R&D, the company is targeting revenues of $ 1 billion by 2010, the growth mainly driven by formulations both in regulatory and emerging markets. Aurobindo obtains regulatory approvals in lifestyle disease drugs and sterile and non-sterile cephalosporins having substantial entry barriers. Aurobindo, growing at a rate of 29 percent created a name for itself in the manufacture of bulk actives, its area of core competence. In the past 10 years, the company is growing at a Compound Annual Growth Rate (CAGR) of 24 percent. After ensuring a firm foundation of cost effective production capabilities and a clutch of loyal customers, it has entered the high margin specialty generic formulations segment, with a global marketing network. The formulations business segment now contributes around 40 percent to the overall revenue and is expected to grow with the companies increasing focus on lifestyle disease drugs and anti-aids products.

The medium term strategy of Aurobindo Pharma is to continuously globalise its IP assets and enhance value to shareholders and customers. In global markets, the company shall retain and enhance cost efficient quality leadership in semi synthetic penicillins, cephalosporins, newer anti infectives and lifestyle disease drugs. It is the endeavour of the company to achieve this by resolving complex chemistry challenges, improving process efficiencies, adopting global scale manufacturing and using cost effective market networks throughout South East Asia, Africa and Latin America.

Inorganic forays

In an effort to harness the generic opportunities both in regulated and other global markets, Aurobindo Pharma has established a number of wholly owned subsidiaries, joint ventures, and representative offices at strategic locations across the world. Having established a strong foundation in the US and European markets, the company is now targeting to penetrate other key generic markets such as Canada, South Africa, Australia and Japan. Also, with the largest basket of anti-AIDS products outside the US, Aurobindo is committed to supply quality ARV products from its world-class facilities.

Future perspective

Aurobindo is targeting to become a $ 1 billion pharma company by 2010. The corporate plans are to ensure growth through organic means, and by adopting strategic joint ventures and alliances. The objective is to maximise revenues and reduce risks. The company aims to become Asia's leading and one among the top 15 generics pharma companies globally by 2015.