Aurobindo Pharma Success Story: Committed to Quality and Safety

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Aurobindo Pharma Success Story

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.

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

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.

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 1988–1989 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.

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 2030”

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 - 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.

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 “Outstanding Export Performance Award” 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 ‘Best Management Award’ 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.

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.