Aurobindo Pharma Q1 Net Rises 40% To Rs 635.8 Crore, Beats Street Estimates

Aurobindo Pharma, India’s second-largest drugmaker August 7 reported a 40 percent year-on-year (YoY) rise in net profit to Rs 635.8 crore in the first quarter ended June 30, led by strong sales growth of US, Europe and antiretroviral businesses.

The company reported a net profit of Rs. 455.7 crore in the corresponding quarter of the previous year.

The numbers were better than analysts estimates. Reuters Smart Estimate projected a net profit of Rs 627.3 crore and revenues of Rs. 5,264.6 crore.

Revenues rose 28.1 percent YoY to Rs. 5,444.6 crore.

The EBITDA margins stood at 21. 1 percent.

The research and development (R&D) spend stood at Rs 243 crore or 4.5 percent of the revenues.

Aurobindo’s net debt dropped 18.3 percent on QoQ basis to Rs 4,093.9 crore.Sales of formulation or generic drugs, which contribute about 87 percent of total revenue grew 34.6 percent to Rs 4,712 crore compared with Rs 3,500.8 crore in the year-ago period.

Sales of active pharmaceutical ingredients (API), the key raw materials that go into the manufacture of drugs, dropped 2.1 percent to Rs. 732.2 crore.

The US formulation business accounting almost half of Aurbindo’s revenues grew 42.3 percent YoY to Rs 2,688.4 crore. However, on a sequential basis, the US business gained 8.4 percent.

The company received final approval for nine abbreviated new drug applications (ANDAs) including six injectables in Q1FY20.

In the first quarter, the company filed 12 ANDAs, of which three are injectable drugs.

The company has launched 15 products including four injectables during the quarter

As on June 30, 2019, on a cumulative basis, the company filed 551 ANDAs with USFDA and received approval for 412 ANDAs including 26 tentative approvals.

EU formulations contributed 25.6 percent to the total revenue registered a growth of 16.1 percent to Rs. 1,391.6 crore.

The antiretroviral drug sales doubled to Rs 318.5 crore over the year-ago period.

“We have started the year with a healthy performance. Enhancing our quality management practices and adhering to the regulatory requirements continues to be our highest priority,” said N Govindarajan, Managing Director of the company.

“During the quarter, we have commissioned Eugia’s manufacturing facility and launched 5 Oncology and Hormonal products in the US market. Our differentiated product basket is progressing well and we are in the process of starting clinical trials for our first biosimilar in Q2FY20,” Govindarajan added. – Moneycontrol