Aurobindo China Plant to Begin Commercial Operations Q3 FY25

19 Aug 2024 , 02:23 PM

According to Chief Financial Officer Santhanam Subramanian, Aurobindo Pharma expects its China facility to begin production in the next quarter, with full-scale manufacturing not expected until the following fiscal year. The Hyderabad-based pharmaceutical company intends to begin a limited scale rollout in November-December and aims to ramp it up in the January-March quarter of the following year.

“Our China plant is expected to be commercialised in Q3 FY25, with a ramp-up beginning in Q4 FY25,” Subramanian said during an analyst call.

He indicated that full-fledged volume production will begin at the site in fiscal year 26.

“We’re trying to file for both China and the United States. So all of this will increase China’s revenue potential in the future years. This year, we will only see a tiny volume and value,” Subramanian said.

He also stated that the company is on track for the large-scale commercialisation of Pen-G (penicillin).

He stated that the company hopes to greatly increase manufacturing beginning in October of this year.

The company’s ₹2,400 crore Pen-G plant in Andhra Pradesh, which was approved under the country’s Production-Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs), will produce approximately 15,000 tonnes per year.

Subramanian expects the current pricing condition in the US market to persist.

Europe and growth markets are projected to maintain their growth momentum, he noted.

Overall, the drug company is confident in meeting its internal EBITDA goal margin of 21-22% for the current fiscal year, according to Subramanian.

Aurobindo Pharma recorded a 61% year-on-year growth in total net profit to ₹919 crore for the April-June quarter this fiscal. In the June quarter, the drugmaker reported operating revenue of ₹7,567 crore.

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