Aurobindo Pharma reported an almost 80% year-on-year increase in consolidated net profit to ₹907.35 crore for the quarter ended March on the back of 21% increase in revenue from formulations while contribution of active pharmaceutical ingredients (API) remained flat.
Total revenue from operations increased 17% to ₹7,580.15 crore (₹6,472.96 crore). For the fiscal ended March, the drugmaker registered a more than 64% increase in consolidated net profit to ₹3,168.97 crore (₹1,927.65 crore). Revenue from operations for 2023-24 rose almost 17% to ₹29,001.87 crore (₹24,855.38 crore).
“Extremely delighted to report a strong performance for the quarter and the year, supported by the expansion into the new markets, product launches and stable pricing. Our improved capacity utilisation has led to higher operating efficiencies,” vice-chairman and MD K. Nithyananda Reddy said in a release.
The company is confident of continuing the growth in the upcoming year, while stabilising operations of the recently commercialised facilities, he said.
During the fourth quarter, the formulations revenue in the U.S. (excluding Puerto Rico) increased 21.6% YoY to ₹3,588 crore ($432 million), while in Europe it went up 10.4% to ₹1,832 crore (euro 203 million) and in Growth Markets rose 49.5% to ₹852 crore ($103 million).
The ARV revenue increased 31.5% to ₹238 crore ($29 million). API revenue remained flat at ₹1,019 crore ($123 million), Aurobindo Pharma said in a release.
U.S. FDA OAI for subsidiary’s plant
Separately, in a filing, Aurobindo Pharma said the U.S. Food and Drug Administration (U.S. FDA) post an inspection, earlier this year, of a formulation manufacturing facility of the company’s subsidiary Eugia Pharma Specialities near Hyderabad has determined the inspection classification status as Official Action Indicated (OAI).
The U.S. FDA had inspected the facility (Unit III) from January 22 to February 2. The company remains committed to work closely with the regulator and continues to enhance its compliance on an ongoing basis, Aurobindo Pharma said.
The inspection of the facility had closed with 9 observations from the U.S. FDA. In a filing after the inspection concluded, the parent company had said “we will be responding to these observations within the stipulated time. The company has decided to temporarily stop manufacturing on certain lines to conduct holistic investigation and corresponding partial distribution thereto.”
OAI is one of the three classifications that U.S. FDA issues after evaluating the inspection findings. OAI means regulatory and/or administrative actions are recommended, while No action indicated (NAI) means no objectionable conditions or practices were found during the inspection. Voluntary action indicated (VAI) means objectionable conditions or practices were found, but the agency is not prepared to take or recommend any administrative or regulatory action.
