New Delhi, August 18, 2025 — Aurobindo Pharma said two manufacturing units in the United States are slated to start production within the current fiscal, tightening the company’s supply chain in its largest market. At the same time, its China oral-solid-dosage (OSD) facility, commissioned late November 2024, is ramping up and is on track to break even at the EBITDA level by Q3 FY26, according to CFO Santhanam Subramanian.
The Hyderabad-based drug maker has invested about $70 million in the two US plants. Once online, these units will add capacity for key generics and improve service levels to large buyers. The company said the staged start-up will also reduce logistics risk and shorten lead times for high-volume products sold in the US.
Meanwhile, the China OSD site, with an initial capacity exceeding two billion units, has moved from validation to scale-up. Management expects the plant to contribute to revenue over the next few quarters, with operating metrics improving as batches stabilize. The company has previously disclosed that the China facility has been commercialized and will support global supplies, including to regulated markets. PTI News
“The facility is ramping up as expected and will begin contributing to revenue in the coming quarters. We expect break-even by Q3 FY26,” Subramanian said, adding that the expansion aligns with Aurobindo’s multi-site strategy for assured supply.
Why this matters
Aurobindo remains one of India’s largest exporters of generic medicines to the US. Fresh, compliant capacity in the US should de-risk the portfolio from shipping disruptions and diversify the company’s cost base. The China site, on the other hand, helps unlock scale economics for oral solids, a segment where price competition is intense.
What to watch
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Regulatory milestones: timely approvals and successful pre-approval inspections at the US sites.
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Throughput and yields at the China plant as the mix shifts from validation to commercial runs.
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Gross margin trend as in-house capacity replaces third-party sourcing.
Context
Aurobindo has indicated in prior investor updates that the China OSD plant has been commercialized, supporting a phased global roll-out of products from the site. External coverage through 2024 also tracked the start-up timetable, with commercial production expected to ramp through FY25–FY26. PTI NewsMedical Dialogues
