Hyderabad-based Aurobindo Pharma Ltd has decided to spread
its wings to Mumbai. The company will set up a new research
and development (R&D) facility in the city with an investment
of about Rs 50 crore.
Aurobindo Pharma group financial advisor Lanka Srinivas:
"We have acquired a Maharashtra Industrial Development
Corporation plot in Andheri [a Mumbai borough] to set
up the R&D facility. We have recruited around 60 scientists
and the R&D centre will focus on speciality formulations."
company has already got an R&D centre in Andhra Pradesh,
fully dedicated to active pharmaceutical ingredients.
Aurobindo scrip has shot up by over 17 per cent in the
last one month to touch a high of Rs 444 as against Rs
379 on 1 July 2003. The scrip closed at Rs 387 last week.
opportunities and the completion of a restructuring exercise
of manufacturing facilities have spurred investor interests
in Aurobindo Pharma recently. Analysts put the resurgence
of interest in the stock to the company''s restructuring
efforts and its thrust on exports.
three main reasons for the interest are manufacturing
facilities in China, restructuring of operations including
upgrading of facilities to meet regulatory markets and
the product pipeline, which includes high-value bulk drugs,"
says a pharma analyst. "This could help companies
such as Aurobindo Pharma immensely as they already have
facilities matching US Food and Drug Administration standards
and are expected to establish a presence in regulated
markets, including the US."
report by Edelweiss Capital says: "Aurobindo has
invested over Rs 325 crore on expansion of capacities
for its key product lines. This expansion will place Aurobindo
among the top 10 global manufacturers of semi-synthetic
penicillins and cephalosporins and enhance it competitiveness
in global markets. With a leaner cost base and widened
product pipeline, we expect the company to show a buoyant
earnings growth over the next two years."