Aurobindo's formulation unit to be ready in 2 yrs

Hyderabad-based Aurobindo Pharma Limited is setting up a formulation unit at a cost of Rs 170 crore in a special economic zone being developed by the Andhra Pradesh Industrial Infrastructure Corporation near Jadcherla in Mahabubnagar district, about 80 km from here.

The unit is being established in two phases and the first phase would be completed by next year. It would employee over 250 people.

Following this, the company expects that the contribution from its formulations segment will increase from the current level of 30 per cent to over 50 per cent of the total turnover.

Aurobindo, which has targeted to become a $1-billion company by 2009-10, posted a turnover of Rs 1,979.72 crore and a net profit of Rs 229 crore during 2006-07.

"Aurobindo is a vertically integrated global pharmaceutical company. Now, we are looking for scale and cost efficiency. SEZs, which are exempt from all direct and indirect taxes, offer a good platform for our exports," a company official told Business Standard.

According to him, Aurobindo seeks to establish a strong presence for its generic formulation products in the regulated markets. In this connection, the company has advance planning and initiated research and development efforts to make a timely entry.

Drugs due for patent expiry are identified early and their generic equivalents developed. The next step is to file for and receive patents and plant approval.

So far, the company has filed 644 DMFs (drug master files) and 252 ANDAs (abbreviated new drug applications) in the US, Europe and other regulated markets. It has received approvals for 50 ANDAs from the US, 6 from Europe and 24 ANDAs from others.

Its product portfolio is spread over six therapeutic areas (antibiotics, anti-retrovirals, central nervous system, cardiovascular condition, gastroenterologicals and anti-allergics) encompassing 65 APIs (active pharmaceutical ingredients) in the non-antibiotics and 55 APIs in the antibiotic segments. These segments are stated to be having a worldwide market size of $229 billion.