Aurobindo fights US pricing pressure

New products, cranking up volumes among key steps

Aurobindo Pharma has shed 10 per cent over the last four trading sessions after pricing pressures and compensations to dealers in the US led to lower-than-expected performance for the December quarter. Management said pricing pressure (price erosion) in its base business was seven per cent on a sequential basis and 13 per cent over a year ago. Not surprising that earnings estimates have been cut by four to five per cent for FY18.

Company expects pricing pressure to remain high over the next few quarters. Analysts at Jefferies say Aurobindo portfolio, which has a major share of off-patent drugs, reflects