The shares of this pharmaceutical company gained 2.7% to ₹1,016.20 per share on Wednesday after it received USFDA approval for nasal spray.
Aurobindo Pharma Ltd. is a large-cap company with a market capitalization of ₹58,951 crore. On Wednesday, At 11:55 a.m., the company shares were trading at ₹1,100 a share, an increase of 2.24% from the previous close price of ₹989.40 a share.
Aurobindo Pharma Limited received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Mometasone Furoate Monohydrate Nasal Spray, 50 mcg/spray, which is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Nasonex Nasal Spray, 50 mcg/spray of Organon LLC.
The product will be launched in Q1 FY25. The approved product has an estimated market size of $ 44.5 million for the twelve months ending January 2024, according to IQVIA. Aurobindo now has a total of 507 ANDA approvals (488 Final approvals and 19 tentative approvals) from USFDA.
Mometasone Furoate Monohydrate Nasal Spray, 50 mcg/spray, is prescribed for adults and children aged 2 and above to alleviate nasal symptoms associated with seasonal allergic and perennial allergic rhinitis.
Aurobindo Pharma primarily focuses on producing and selling active pharmaceutical ingredients, generic pharmaceuticals, and related services. It stands as India’s second-largest pharmaceutical company and the largest generics company in the United States, holding a significant position among the top 10 generic companies across seven out of 11 European countries.
The company dominates the market for Semi-Synthetic Penicillins and operates across vital therapeutic areas such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics, gastroenterology, and antibiotics, among others.
In the third quarter of FY24, Aurobindo Pharma generated 86% of its revenue from the Formulation business, 13.5% from APIs, and 0.5% from Puerto Rico. Geographically, the company’s revenue is primarily derived from the USA (60%), Europe (27%), and Growth Markets, including India (10%).
Aurobindo Pharma operates 24 manufacturing and packaging units located in India, Portugal, Brazil, and Puerto Rico. As of Q3FY24, the company holds 820 ANDAs, 261 DMFs, and 792 patent applications with the USFDA, along with over 4164 dossiers across Europe and other regions.
Under the Production Linked Incentive (PLI) scheme, the company initiated a project to produce 15,000 tonnes of Penicillin G in Kakinada, Andhra Pradesh, expected to conclude by FY24, with an estimated capital investment of ₹1850 to ₹1900 crore.
With exports to over 150 countries worldwide, Aurobindo Pharma generates 90% of its revenue from international operations, with the US market being its primary focus. In Q3FY24, revenue from the US market witnessed a growth of approximately 27%.
The company’s shares have surged by 14% in the last six months and 113% in the last 12 months.
Aurobindo Pharma experienced a 15% increase in its annual revenue from ₹6,407 crore in Q3FY23 to ₹7,352 crore in Q3FY24. Concurrently, its net profit surged by 91% from ₹491 crore to ₹940 crore during the same period.
Written by Omkar Chitnis
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