Aurobindo Pharma Limited - Success Story of the Leading Generics Maker in India
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It is hard to imagine if there were no pharmaceutical manufacturing companies. Then how would we have got the basic drugs like painkillers, antibiotics, anti-allergic tablets, or any other form of medication?
They say, health is wealth, and it is a fundamental need of every society. Thanks to these pharmaceutical manufacturing companies, they ensure that effective drugs can help enhance a person's health and improve the overall quality of life.
Pharma company like Aurobindo Pharma Limited founded in 1986, is aiding society with their high-quality generic pharmaceuticals and APIs. Hyderabad's HITEC City serves as the corporate headquarters for this worldwide pharmaceutical manufacturing company.
Know more about Aurobindo Pharma like its history and evolution, business model, revenue model, competitors, and much more mentioned in this article further.
Aurobindo Pharma - Company Highlights
| Startup Name | Aurobindo Pharma Limited |
|---|---|
| Headquarters | Hyderabad, Telangana, India |
| Sector | Pharmaceutical Manufacturing |
| Type | Public |
| Founder | P. V. Ramprasad Reddy, K. Nityananda Reddy |
| Founded | 1986 |
| Revenue | $2.9 billion (FY22) |
| Net Worth | $3.08 billion (FY22) |
| Website | aurobindo.com |
Aurobindo Pharma - About
Aurobindo Pharma - Industry
Aurobindo Pharma - Founders
Aurobindo Pharma - Startup Story
Aurobindo Pharma - Mission and Vision
Aurobindo Pharma - Name, Tagline, and Logo
Aurobindo Pharma - Business Model
Aurobindo Pharma - Revenue Model
Aurobindo Pharma - Challenges/ Controversies
Aurobindo Pharma - Mergers and Acquisitions
Aurobindo Pharma - Awards and Achievements
Aurobindo Pharma - Competitors
Aurobindo Pharma - Future Plans
Aurobindo Pharma - About
The company mainly produces generic medications and active pharmaceutical ingredients (APIs). In 1992, Aurobindo Pharma went public, and in 1995, it listed its shares on the Indian stock exchanges. Aurobindo Pharma is the industry leader in semi-synthetic penicillins and also has a foothold in important therapeutic areas including gastroenterology, neurosciences, cardiovascular disease (CVS), antiretrovirals, and antibiotics. All of these products are marketed in over 150 countries. It is R&D-focused, which offers a variety of products, and has manufacturing sites spread across numerous nations.
The company also entered the lucrative speciality generic formulations area because of its affordable production capabilities and a few devoted clients. Presently, Aurobindo Pharma is ranked among the top ten pharmaceutical firms in India based on consolidated sales.
The company operates in-house R&D for the quick filing of patents, Drug Master Files (DMFs), Abbreviated New Drug Applications (ANDAs), and Formulation Dossiers across the globe. Multiple facilities are approved by leading regulatory agencies, including USFDA, EU GMP, UK MHRA, South Africa-MCC, Health Canada, WHO, and Brazil ANVISA. In addition, one of the top DMFs and ANDAs filers from India is Aurobindo Pharma.
Aurobindo Pharma - Industry
The Indian pharma industry has been seeing a tremendous growth rate in the last five years. As per reports, the Indian pharmaceutical market has been growing at a compound annual growth rate (CAGR) of more than 15% over the last five years. According to the Indian Economic Survey 2021, the growth is expected to be three times faster in the coming decade. The current market size for pharmaceuticals in India is $41 billion, which is expected to reach $65 billion by 2024 and $130 billion by 2030.
Ashwini
Aurobindo Pharma - Founders
Aurobindo Pharma was founded by P.V. Ramprasad Reddy and K. Nityananda Reddy in 1986.
P.V. Ramprasad Reddy
P.V. Ramprasad Reddy is an Indian businessman and one of the founders of Aurobindo Pharma. He holds a degree in Commerce. Mr Ramprasad Reddy is responsible for taking care of strategic planning for the company. He held senior positions in several pharmaceutical firms before founding Aurobindo Pharma in 1986.
Mr Ramprasad Reddy was placed No. 27 in India and No. 688 globally in the 2016 Forbes list of Indian billionaires, with a net worth of $2.5 billion. Besides this, he was also listed as one of the top 35 figures in the pharmaceutical sector by World Pharmaceutical Frontiers in 2008.
K. Nityananda Reddy
Along with being the founder of Aurobindo Pharma, K. Nityananda Reddy serves as the Vice Chairman and Managing Director of Aurobindo Pharma. He has a Master's degree in Science specialising in Chemistry. K. Nityananda oversees the overall operations of the Company and knows manufacturing technologies.
Aurobindo Pharma - Startup Story
The company was first started on 26th December 1896 as a private limited company. Its business took off in Puducherry in 1988â1989 with a single unit producing semi-synthetic penicillin (SSP).
Within a few years, Aurobindo established another facility at Pashmylaram, close to Hyderabad, to produce CMIC Chloride, a bulk drug intermediate.
In 1992, Aurobindo Pharma went public, and in 1995, it floated its shares on the Indian stock market. Later on, the company made an alliance with a UK-based company, Glaxo (India) to expand its business operations across UK boundaries. In 2001, it launched an exclusive anti-viral branch called Immune with the goal of educating and treating HIV/AIDS patients in the nation using preventative medications.
In 2005, Aurobindo strategically entered the high-end markets of the USA and Europe with generic formulations by taking part in the PEPFAR program, which was started by the US government. After five years, the company signed licencing and supply contracts with AstraZeneca, one of the top biopharmaceutical firms in the world, to provide many solid dosage and sterile products for developing countries.
It was in 2019, that Aurobindo started the establishment of a production plant for oral solids in Taizhou, China. In recent years, the company has made many establishments across other countries.
Sarika Anand
Aurobindo Pharma - Mission and Vision
The mission of Aurobindo Pharma is, "To become the most valued Pharma partner to the World Pharma fraternity by continuously researching, developing and manufacturing a wide range of pharmaceutical products that comply with the highest regulatory standards."
Aurobindo's vision reads, "To become a leading and an admired global pharma company, ranked in the top 25 by 2030â
Aurobindo Pharma - Name, Tagline, and Logo
The tagline of Aurobindo Pharma is, "Committed to healthier life!"
Aurobindo Pharma - Business Model
The business model of Aurobindo Pharma consists of three segments:
- Generics/ Branded Generics
- Product Out Licensing
- Contract Manufacturing
The business of Aurobindo is present in over 150 countries. It has eight key formulation facilities in India and one each in US and Brazil.
Some of the different formulations offered by Aurobindo are:
- Anti-bacterial like Penams, SSPS & Combinations, Quinolones
- Central Nervous System (CNS) products like Anti-Alzheimers, Anti-Depressants
- Cardiovascular (CVS) Products like Anti-Platelets, Beta Blockers, ACE Inhibitors
- Other products like Anti Viral, Anti-Diabetics, Anti-Fungals, etc.
Aurobindo's business includes a vertical integration that offers cutting-edge solutions. Its cost-effective medication development and significant manufacturing support help in the expansion from discovery to development and commercialization.
As mentioned, Aurobindo's R&D Center has created goods and submitted over 200 ANDAs, around 124 product dossiers in the EU, and several dossiers in other nations, including Brazil, South Africa, Australia, and China. A multidisciplinary team of over 700 scientists working for excellence is housed in over 13,000 square metres at its R&D Center in Hyderabad.
Another key business unit of Aurobindo is AuroZymes. It is a biocatalysts division of Aurobindo Pharma Ltd. The biocatalysts are created and produced by AuroZymes for usage in the chemical and pharmaceutical industry. These biocatalysts were first created for internal usage, however, they are now accessible to Aurobindo's clients. Through AuroZymes, Aurobindo helps develops a range of services to increase their client's production as per their requirement.
AuroSource is also a crucial aspect of Aurobindo Pharma. It is the custom research and manufacturing division of Aurobindo. Through AuroSource, the company offers customer-centric project-based chemistry services.
Aurobindo Pharma's business operations also include the subsidiary division of Aurobindo Pharma, Auro Peptides Ltd. It offers cutting-edge solutions from research to development and commercialization and cost-effective drug manufacturing.
Aurobindo Pharma is also known for its great CSR activities. The company has established an agency, Aurobindo Pharma Foundation in order to implement its welfare activities. Its welfare activities have proved to be beneficial for lakhs of individuals.
Aurobindo's CSR Activities
Many areas of sustainable assistance are covered by Aurobindo's sustainability charter in favour of preventive healthcare like making safe drinking water available, encouraging education, eradicating hunger, poverty, and malnutrition, environmental sustainability, setting up old-ages homes for elderly people, maintaining ecological balance, conversing natural resources, and many more.
Aurobindo Pharma Foundation
Through its foundation, the company has set up 70 Reverse Osmosis (RO) Water Purification Plant in many locations. It has also constructed hundreds of modern toilets in various government schools, colleges, stadiums, etc in Hyderabad and Telangana states. To create Open Defecation Free communities (ODF), the Aurobindo Pharma Foundation has backed the Integrated Household Latrine (IHHL) initiative in some states' villages.
Aurobindo Pharma - Revenue Model
It is reported that Aurobindo Pharma generates revenue by exporting its products to over 155 countries across the globe. Through this, around 90% of the company's revenues are derived from international operations. As per the company's annual report 2021-22, 85% of total revenue comes from formulations and the other 15% is from APIs. Aurobindo Pharma Limited reported revenue of 23,455.5 crore INR ($2.9 billion) for FY22.
Avantika Bhardwaj
Aurobindo Pharma - Challenges/ Controversies
One of the biggest challenges for Aurobindo was in the year 2019. The issue was when the US Food and Medicine Administration sent Aurobindo a warning notice, following an inspection of Aurobindo Pharma Limited's Pydibhimavaram, Ranasthalam (Mandal), Srikakulam District, Andhra Pradesh drug manufacturing plant. The warning letter stated that its API's manufacturing process was faulted and had significant deviations from current good manufacturing practices (CGMP).
In 2018, another challenge for Aurobindo was when the Dutch documentary television show 'Zembla' featured their manufacturing plant in Hyderabad. The show described charges brought against the business for allegedly harming the environment and providing inadequate working conditions for its employees in Hyderabad, India.
Aurobindo Pharma - Mergers and Acquisitions
Seven businesses have been acquired by Aurobindo Pharma. Veritaz was their most recent purchase, made on March 28, 2022. They paid 171 crore INR ($22.4 million) to purchase Veritaz. Veritaz is a Hyderabad-based company that offers products in anti-infective and pain-management therapeutic areas.
Recently, in August 2022, the company announced that it has completed the acquisition of 51% equity shares in GLS Pharma Limited for 28.05 crore INR. GLS Pharma operates in the oncology business and has become a subsidiary of Aurobindo Pharma. Aurobindo Pharma has an open call to buy the rest of the 49% stake in the company after three years but before five years from the current acquisition.
The acquisition details of Aurobindo Pharma are listed below:
| Date | Acquiree Name | Amount |
|---|---|---|
| March 28, 2022 | Veritaz | $22.4 million |
| September 6, 2018 | Sandoz International | $900 million |
| January 9, 2017 | Generis FarmacĂȘutica | $142.9 million |
| November 12, 2014 | Natrol | $133 million |
| September 13, 2013 | Silicon Life Sciences | -- |
| September 13, 2013 | Hyacinths Pharma | -- |
| August 17, 2009 | Trident Life Sciences | $27.9 million |
Aurobindo Pharma - Awards and Achievements
The awards and achievements of Aurobindo Pharma are:
- At the Global Generics & Biosimilars Awards 2019, which were held in Frankfurt, Germany, Aurobindo won two prizes; Company of the Year and Acquisition of the Year.
- Aurobindo Pharma received the âOutstanding Export Performance Awardâ from the Pharmaceuticals Export Promotion Council of India for the year 2008-09.
- The State Labour Department of the Government of Andhra Pradesh awarded Aurobindo the âBest Management Awardâ in 2005.
Aurobindo Pharma - Competitors
The top competitors of Aurobindo are:
- Dr. Reddy's Laboratories
- Sun Pharmaceutical Industries
- Divi's Laboratories
- Cipla Limited
- Torrent Pharma
- Lupin Ltd.
- Gland Pharma Ltd.
- Abbott India
- Alkem Lab
- Zydus Lifesciences Ltd.
- Ajanta Pharma
- Pfizer
- Glenmark Pharma Ltd.
Shalini Rath
Aurobindo Pharma - Future Plans
The company announced through its annual report 2021-22 that it intends to broaden its product line with high-value cancer, hormone, biosimilar, and innovative drug delivery methods including depot injections, inhalers, patches, and films. Given that the generic medication industry in these nations is very tiny, it has also set its sights on geographic development in new areas including Poland, Italy, Spain, the Czech Republic, Portugal, and France.
To increase its position in the hospital sector, the pharmaceutical company is also constructing an injectable plant specifically for Europe and emerging countries. It will soon begin submitting novel injectable drugs in FY23, with commercialization beginning as soon as in FY24.
Here's what the Vice Chairman and Managing Director, K. Nithyananda Reddy say about global expansion, "We also intend to transfer a few products from Europe to the China facility. With a total target of reaching 40 products in China, if we are successful in realising our plans then there should be significant accretion to both our topline and bottom-line spreads"
FAQs
Who founded Aurobindo Pharma?
Aurobindo Pharma was founded by P. V. Ramprasad Reddy and K. Nityananda Reddy in the year 1986.
Where is the company Aurobindo located?
Aurobindo Pharma has its headquarters in Hyderabad, Telangana, India.
What is Aurobindo Pharma's revenue 2022?
Aurobindo Pharma Limited reported revenue of $2.9 billion for FY22.
Is Aurobindo a generic?
Aurobindo Pharma is an Indian multinational pharmaceutical manufacturing company which is one of the largest producers of generic medicines in the world.
Which pharma company is at the top in India?
Top pharma companies in India are:
- Aurobindo Pharma Limited
- Dr. Reddy's Laboratories
- Sun Pharmaceutical Industries
- Divi's Laboratories
- Torrent Pharma
- Abbott India Ltd.
- Cipla Limited
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