New Delhi: Aurobindo Pharma is currently incurring a loss at its China-based facility and expects the plant to achieve break-even by the end of the fiscal year, according to its CFO S Subramanian.The Hyderabad-based drug major remains confident about sustaining its growth momentum and driving value creation across all businesses, he said.
"China (plant), as on date in the quarter, I will be incurring a loss of around maybe a million dollars, but, probably, we will be able to achieve the break-even between Q3 and Q4 and after that, China will start moving up in the overall contributing to the growth of the EBITDA growth," Subramanian said in an analyst call.
The oral-solid-dosage (OSD) facility in China continues to ramp up, advancing towards the capacity of two billion, backed by European approval of ten products and three local product approvals, he stated.The site is on track to deliver EBITDA break-even by Q3-Q4 FY26, reinforcing its strategic importance to the global network, he added.
On domestic operations, he noted that during the second quarter, the company produced around 1,050 MT of Pen-G by operating at 40-50 per cent capacity, amounting to around 6,000 MT production on an annualised basis."It is pertinent to note that the yields are consistently improving. Like other companies, we have made our representation to the government to implement the minimum import price, which will support the further ramp up in achieving 100 per cent capacity utilisation, taking the production to 15,000 MT in a very short term," he pointed out.
Subramanian said Europe continues to deliver robust revenue growth, underscoring the region's strategic importance and operational strength.In the US, Dayton (facility) has transitioned into the commercial phase, with manufacturing underway, packaging approval secured, and product launches scheduled from January, positioning the site to start contributing significant revenues in FY27, he added.
"In the next two years, our growth will be driven by several key factors, including ramp-up of our Pen-G facility, commercialisation of the biosimilar portfolio and rapid progress in our biologic CMO (contract manufacturing operations)," Subramanian stated.The company expects continued improvement in the injectable business, driven by continued supply ramp-up, increasing supplies from the China plant to Europe, additional contribution from a robust pipeline of new launches and the Lannett acquisition in the US, which will further strengthen the market position, expand portfolio and drive medium-term growth, he added."We are confident of achieving our internal margin target of 20-21 per cent for FY26," he said.
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