Are you exploring top pharmaceutical stocks in India? If you’re interested in a strong investment in the country’s growing pharmaceutical sector, Aurobindo Pharma stands out. As the 8th largest pharmaceutical company in India, it has seen impressive growth since its start in 1986. Reading the Aurobindo Pharma history could reveal why this success story might be worth your attention.
Let us take you down memory lane to the day when Auropharma was born!
History of Aurobindo Pharma Ltd
Aurobindo Pharma’s journey is a tale of relentless innovation and impressive growth.
Founded in 1986, this company started with a single unit in Pondicherry. It focused on manufacturing semi-synthetic penicillins.
Over the decades, Aurobindo has evolved into one of the world’s leading pharmaceutical firms.
So, buckle up as we take a tour through the milestones that shaped their remarkable path- Aurobindo Pharma history!
1986: The story begins on December 26th when Aurobindo Pharma Limited (APL) was born. Mr. P.V. Ramprasad Reddy and Mr. K. Nityananda Reddy founded this company as a private limited entity.
Initially, they focused on manufacturing semi-synthetic penicillins (SSPs) in Pondicherry.
Fast forward to 1988-1989, Aurobindo Ltd kicked off operations with a single unit.
This marked the start of their journey into the pharmaceutical world.
In 1992-1993, they expanded by establishing another unit in Pashmylaram, Hyderabad. This unit was dedicated to manufacturing CMIC chloride, a key bulk drug intermediate.
Then came 1994-1995. Aurobindo Ltd merged with Chaitanya Organics Pvt. Ltd.; the goal was to ramp up their production capabilities. The company also went public in 1995, marking a significant milestone.
It listed its shares on the Indian stock exchanges in 1995.
In 1997-1998, a key alliance with Glaxo (India) helped Aurobindo meet global bulk drug demands. This was a significant global move as Glaxo is the subsidiary of UK-based MNC.
Moving on to 1999-2000, Aurobindo diversified its portfolio. It introduced a range of Cephalosporins and anti-virals. This was followed by a launch of joint ventures for formulations in the US market. They also amalgamated Sri Chakra Remedies Ltd into the company.
In 2001-2002, they launched an exclusive anti-viral division named Immune. The medicine focuses on HIV/AIDS treatment. This period also saw the acquisition of a 79% stake in Ranit Pharma Company, which was merged with Aurobindo.
2003-2004 was an exciting time. A joint venture with Shanxi Tongling Pharmaceuticals in China was launched. In the same year, its commercial production commenced in its 100% subsidiary in China.
It was now time for international recognition!
Aurobindo Pharmaceuticals received its first Certificate of Suitability (CoS) from the European Directorate for Quality Medicines (EDQM).
By 2004-2005, Aurobindo had acquired a sterile plant from Dee Pharma. The State Labour Department of Andhra Pradesh recognised the company with the ‘Best Management Award’. Additionally, it received US FDA clearance for AIDS drugs at its Unit VIII facility.
2005-2006 marked Aurobindo’s entry into the premium markets of the USA and Europe with generic formulations. They also acquired Milpharm Limited, a UK-based marketer of generic formulations.
2007-2008 was all about brand evolution!
Aurobindo revealed a new logo and corporate identity in Hyderabad. They also acquired intellectual property and marketing authorisations from TAD Italy.
And thus, they now gain access to over 70 ready-to-market products.
In 2010-2011, the company entered into licensing agreements with AstraZeneca. It divested a majority stake in its subsidiary in China, Aurobindo (Datong) BioPharma Co Ltd.
2014-2016 was a period of significant acquisitions. Aurobindo acquired commercial operations from Actavis Plc in Western Europe and Natrol Inc.
Additionally, they signed an agreement to acquire rights to calcium and calcium vitamin D3 products from Teva Pharmaceutical Industries in France.
Moving to 2017-2018, Aurobindo signed a few agreements! The first one was to acquire dermatology and oral solids businesses from Sandoz Inc. The second one aimed to acquire Apotex Inc.’s operations in five European countries. They also began filing Oncology & Hormones, Dermatology, and Nasal ANDAs in the US. The company further acquired Generis in Portugal.
But wait, they were not done yet!
They further acquired four cell-culture-derived biosimilar products from TL Biopharmaceutical AG.
This was indeed an era of strategic international decisions and moves!
In 2019-2020, Aurobindo continued its expansion. It was now time for the acquisition of a portfolio of seven branded oncology injectables from Spectrum Pharma Inc. They also began clinical trials for their first biosimilar.
They filed their first metered-dose inhaler (MDI) in the USA.
The result?
Aurobindo Pharma received approval for its first nasal product. The period ended with the divestment of Natrol, turning the company into a net cash entity.
Finally, 2021 was a milestone year. Aurobindo received the first approval in China for its India facility and started Phase III clinical trials for PCV.
This was again followed by the acquisition of nine OTC brands. And thus came the filing of their first biosimilar with the European Medical Agency (EMA).
Aurobindo Pharmaceuticals: Recent Developments and Key Moves in 2024
In early 2024, Aurobindo Pharma faced a significant moment!
Its Bhiwadi facility in Rajasthan received an “Official Action Indicated” classification from the USFDA. This inspection, which took place from April 25 to May 3, highlighted some areas needing attention.
On a more positive note, Aurobindo Pharma also made headlines with its share buyback plan. On July 30, the company announced a buyback scheme worth Rs 750 crore. The plan involves repurchasing up to 51 lakh shares at Rs 1,460 each. This move is part of a broader strategy to manage its capital and enhance shareholder value.
As of the end of June, the company’s promoters owned 51.8% of the shares. Foreign institutional investors and mutual funds held 16.73% and 19.17%, respectively.
For those tracking Aurobindo Pharma, these recent events offer a glimpse into the company’s strategic moves!
And there you have it—a thrilling ride through Aurobindo Pharma’s history!
Let us now take a brief look at Aurobindo Ltd’s company overview.
About Aurobindo Pharma Ltd.
Founded in 1986 by Mr. P.V. Ramprasad Reddy and Mr. K. Nityananda Reddy, Aurobindo Pharma was born with a clear vision. They wanted to become the most valued pharmaceutical partner to the world pharmaceutical fraternity. Thus began a journey.
The company that began with a single plant in Pondicherry is now serving over 150 nations worldwide.
Today, Aurobindo Pharma is a knowledge-driven company. It has a strong focus on R&D, manufacturing active pharmaceutical ingredients, and formulation products. With 11 units for APIs and 15 units for formulations worldwide, Aurobindo is equipped for emerging markets.
About 90% of its revenue comes from international operations, serving premium multinational clients. It is one of the largest filers of DMFs and ANDAs in India.
- Aurobindo Pharma Owner- PV Ramprasad Reddy
- Aurobindo Pharma CEO – Dr Sanjay Chaturvedi
- Aurobindo Pharma Products: It serves over 300 products across 150 nations in the following therapeutic areas:
- Antibiotics
- Antiretrovirals
- Cardiovascular products
- Central nervous system products
- Gastroenterological and anti-allergics.
- Aurobindo Pharma net worth – As of the latest reports, Aurobindo Pharma’s net worth is approximately Rs 57,000 crore.
- Financial Highlights 2023-2024
- Revenue: ₹29,002 Cr (17% increase)
- Net Profit: ₹3,169 Cr (64% increase)
- EBITDA: ₹5,843 Cr
- Net Debt: ₹37 Cr
- EBITDA Margin: 20.1% (503 bps increase)
- Net Worth: ₹29,851 Cr (11% increase)
Key Facts
- 24,000+ employees worldwide
- 155+ Markets
- 27 Modern Manufacturing and Packaging Facilities Globally
- 40+ billion dosage forms produced
Aurobindo Pharma Ltd.: Shaping Holistic Community Well-Being
At Auropharma, the commitment to excellence is deeply ingrained in every aspect of their operations. They have a deep sense of social and environmental responsibility.
A few of their recent CSR efforts include:
- Supporting initiatives that enhance educational opportunities for schoolchildren.
- Improving community health with preventive measures.
- Eradicating hunger, poverty, and malnutrition
- Providing Safe Drinking Water
- Encouraging eco-friendly practices and sustainability.
- Conserving Natural Resources
- Promoting physical activities and sports in rural communities.
- Offering care and support to the elderly through old-age homes.
Their initiatives include supplying educational aids, constructing toilets, etc.
The primary focus remains on advancing education, promoting good health, and enhancing sanitation.
You may also want to know the History of Lupin India Limited
FAQs| Aurobindo Pharma Ltd
Yes, Aurobindo Pharma is an Indian multinational pharmaceutical company. It is headquartered in Hyderabad and exports to over 150 countries.
As of August 8, 2024, Aurobindo Pharma is the 8th largest pharmaceutical company in India by market cap, which is ₹86,232.54 Crore.
As of August 8, 2024, Sun Pharmaceutical Industries Ltd. is the largest pharmaceutical company in India by market cap, which is ₹417,556.21 Crore.
Yes, Aurobindo Pharma stocks are publicly traded and can be purchased on the NSE and BSE.
Sun Pharmaceutical Industries, Cipla, and Dr. Reddy’s Laboratories are considered some of the best pharma stocks to invest in India.
Aurobindo Pharma was started in 1986 by P.V. Ramprasad Reddy and K. Nityananda Reddy. It began with making penicillin in Puducherry and now exports over 300 products to over 150 countries.
Auropharma manufactures generic medicines and offers a wide range of products, including antibiotics, anti-retrovirals, and cardiovascular medicines to over 150 countries.
Source: aurobindo ndtvprofit
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.