The shares of the Mid-Cap company specializing in the development, manufacturing, and commercialization of generic pharmaceuticals, active pharmaceutical ingredients (APIs), and branded specialty pharmaceuticals globally, jumped upto 5 percent following the USFDA approval to manufacture and market Dasatinib Tablets.
Price action
With a market capitalization of Rs. 72,295.28 crores on Wednesday, the shares of Aurobindo Pharma Limited jumped upto 4.8 percent, making a high of Rs. 1246.00 per share compared to its previous closing price of Rs. 1188.10 per share.
What Happened
Aurobindo Pharma Limited has announced that its wholly owned subsidiary, Eugia Pharma Specialities Limited, has received final approval from the USFDA to manufacture and market Dasatinib Tablets in various strengths (20 mg to 140 mg). These tablets are the generic equivalent of Sprycel by Bristol-Myers Squibb and are used to treat certain types of leukemia (Cancer).
This approval marks an important milestone for Eugia, adding to its strong portfolio of oncology products. The product is expected to launch in Q1FY26 and has an estimated market size of $1.8 billion (as of February 2025).
Management Guidance
According to the company’s recent conference call update, they target EBITDA margins of 21 percent to 22 percent in the upcoming years.
Capacity Expansion
According to the management, a CDMO capacity addition of 30 KL (kilolitres) is being undertaken in anticipation of future demand. The rationale is that when a facility is designed for four 15 KL bioreactor capacities, only two lines are built initially, while the remaining two are reserved for Phase 2 expansion.
Revenue Mix
In Q3FY25, the revenue mix for the company was as follows: 68.4 percent came from Generic Orals, 17.6 percent from Specialty & Injectables, 7.5 percent from Branded Oncology, and 6.5 percent from Over-the-Counter (OTC) products.
About the Company
Aurobindo Pharma Limited is an integrated global pharmaceutical company headquartered in Hyderabad, India. The Company develops, manufactures, and commercializes a wide range of generic pharmaceuticals, branded specialty pharmaceuticals, and active pharmaceutical ingredients globally in over 150 countries.
Financials
The company’s revenue rose by 8.27 percent from Rs. 7,514.3 crore to Rs. 8,135.81 crore in Q3FY24-25. Meanwhile, the Net profit declined from Rs. 936.29 crore to Rs. 845.81 crore during the same period.
