Aurobindo Rejigs Top Brass Portfolio To Steer Overseas Foray

The Hyderabad-based Rs 1,000 crore bulk drug major Aurobindo Pharma Ltd has restructured its management responsibilities following its decision to foray into the overseas regulated markets in a big way. As a part of the exercise, P V Ramaprasad Reddy, the main promoter and erstwhile managing director, has been appointed as executive chairman.

Ramaprasad Reddy will concentrate on the "strategies of change" being pursued by the company to achieve its goal of becoming a research and development-based international pharmaceutical company by 2006. To oversee the company's existing operations, K Nityananda Reddy, the erstwhile joint managing director and co-promoter, has been elevated to the post of managing director.

As part of its overseas foray, Aurobindo has chalked out a three-year plan, to be implemented by 2003, as precursor to transform itself into a R&D-driven company by 2006. Towards this, two of its bulk drug units located near Hyderabad are being upgraded with an investment of Rs 17 crore to make them US FDA compliant.

Aurobindo has filed provisional patents for non-infringing processes (NIP) for five products going out of patent. The company is also establishing a 50:50 joint venture company called Cephazone Inc, in California, US, with an investment of $6 million. The venture will be operational by December 2002.

The company's joint venture in China, Aurobindo Tongling (Datong) Pharmaceutical Company set up with an investment of $7 million, has just commenced operations. The venture will produce formulations, sterile bulk drugs and Betalactum products.