Templeton subscribes to Aurobindo shares

Mumbai: Templeton Emerging Markets, an arm of the Franklin Templeton group, is subscribing to the private placement issue of Aurobindo Pharma shares. Early this month, the Hyderabad-based pharma company had issued a Rs 125-crore private placement of shares.

Templeton has confirmed its subscription to one million equity shares and one million share warrants. On subscription to both of the securities, the Templeton group will become one of the major shareholders in the company after the promoters and will have representation on the Aurobindo board. Aurobindo, the Rs 1,000-crore pharma major, with an export base over Rs 550 crore, has embarked on a major initiative to enter the pharmaceutical market in developed countries.

Says Aurobindo Pharma's chairman, P V Ramaprasad Reddy: "Templeton's international financial expertise and its exposure to big international pharma companies will tremendously benefit Aurobindo in further consolidating its position in emerging markets as well as in North America and Europe. Our major growth initiatives are on track and with Templeton coming on the board, our growth will receive a further impetus."

Templeton Emerging Markets is an arm of Franklin Templeton Investments, which, with US $232.0 billion of assets under management, is dedicated to investment management and is one of the world's largest independent-listed fund managers.

Says Templeton Emerging Markets' president, Dr Mark Mobius: "We are confident that the excellent management of Aurobindo Pharma will enable the firm to take its place as a major global pharmaceutical presence. Our investment in the company is being made in order to speed its development and growth." Aurobindo plans to get listed on international stock exchanges in next 18 months.

Towards achieving this objective, two formulation plants and two mega bulk plants are being simultaneously upgraded to comply with the USFDA and other regulatory authorities.  Besides, a formulation facility is in an advanced stage of completion in the US under a joint venture.

Aurobindo has also plans to  file ANDAs for several cephalosporins, CNS, CVS and respiratory drugs. The state-of-the-art R&D centre set up two years ago has worked on intellectual property and has filed several patents to back up their introduction in developed markets.

Aurobindo is the leader in cephalosporins, semi synthetic pencillins, and antivirals. R&D efforts have led its growth in semi-synthetic penicillins by launching advanced generation penicillins and third and fourth generation sterile and non-sterile cephalosporins.

The company has successfully set up manufacturing operations in China through joint ventures and has begun its phase-two expansion. To aid its growth in developing markets, Aurobindo has increased its portfolio and therapy areas. Over 32 lifestyle drugs have been added to its portfolio in the last few quarters, in addition to its dominant presence in cephalosporins, anti-infectives and anti-virals with a portfolio of over 70 anti-infective drugs.