Aurobindo to expand product basket; eyes $3 bn revenues by FY18

looking to deepen integration with nutraceuticals player Natrol Inc, which it acquired last year.

Aurobindo Pharma is targetting a revenue of over $ 3 billion (over Rs 19,800 crores) by 2017-18 and plans to expand its basket with new drugs to treat cancer and hormonal diseases, as also with various nutraceuticals and Over The Counter (OTC) products.

The Hyderabad-based firm, which posted revenues close to $ 2 billion last fiscal, has sizable presence in key therapeutic segments such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics and gastroenterology and cephalosporins, among others currently.

"Team Aurobindo is working day in, day out to make the company even more efficient, even more profitable and has set ambitious targets for the coming months and years, including crossing revenues of $ 3 billion in 2017-18," Aurobindo Pharma, Vice Chairman, K Nithyananda Reddy said in his annual letter to shareholders.

The company has several levers to gain traction with a robust business model, a large differentiated product portfolio that addresses six key therapeutic areas and a growing presence in over 150 countries, he added.

As part of its growth strategy, the company is exploring opportunities in the nutraceuticals market, as per the company's Annual Report for 2014-15.

"Research and Development (R&D) activities have been initiated to identify and develop synthetic nutraceutical products," the company said.

As part of the initiative, it is looking to deepen integration with nutraceuticals player Natrol Inc, which it acquired for a consideration of $ 132.5 million last year.

"Our strategy is to grow the businesses profitably through a combination of cost and growth synergies. Several initiatives have been taken to enhance operational leverage, increase volumes and optimise costs," it said.

Natrol manufactures and sells quality nutritional supplements in the US and select international markets.

As per industry estimates, nutraceuticals business is currently valued at $ 30-35 billion and is expected to reach around $ 55 billion in 2020.

On other product development programmes, Aurobindo said it is working on range of drugs aimed at treating cancer and hormonal diseases at its upcoming new R&D centre in Hyderabad.

"The company is also in the process of developing a wide range of oncology and hormonal products...We have done our first exhibit batches for five hormone products and the dossiers are expected to be filed in 2015-16," it said.

The tablet part of the oncology facility is completed and commissioned and the company has started to run exhibit batches. Besides, the injectable part of the oncology facility is planned to be commissioned in the later part of 2015.

"We are working on 15 oncology products and the plans are to prepare exhibit batches for injectables in the last quarter of 2015-16," the company said.