Aurobindo Pharma to invest Rs 50 crore for R&D centre in Mumbai
By Nisha Das | 29 Jul 2003
Says 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."
The 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.
Export 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.
"The 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."
A 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."