Aurobindo eyes $ one billion mark

Hyderabad, June 13 (UNI) Aiming to become a one billion US Dollar company, Aurobindo Pharma Ltd (APL) plans to invest 115 million USD and create by 2008, two separate subsidiaries for collaborative and contract research to garner a sizeable share of the global formulation market.

The company invested over 350 million USD on manufacturing infrastructure and strengthened its 22 subsidiaries in strategic pharma market across the globe as its business rose from 387 million USD to 500 million USD during this year with more than 60 per cent revenues coming from international operations.

''Our vision is to become a leading provider for generic pharmaceuticals from Asia by 2015,'' Company Chairman Ram Prasad Reddy said.

The immediate goal is to cross one billion USD mark in two to three years, he added.

By 2008, it will create a separate subsidiary for collaborative research, inducting 2,000 professionals, and another 100 per cent owned subsidiary for contract research.

A 50 million USD dedicated formulation plant at its SEZ and a pharma city with another 40 million USD were expected in operation of third quarter next year as it concentrated on the generic market with 160 billion USD products going off patents by 2015 in the US.

The company had acquired the formulation plant from Sandoz at New Jersey in the USA for 22 million USD, which was being upgraded with another ten-15 million USD by creating warehousing and other facilities and was likely to become operational by September 2007.

As margin in the US operation was becoming lower amid stiff competition, APL was looking at Europe and other emerging markets, South Africa and Australia for its growth.

Mr Reddy discounted reports of the company being open for merger, saying, ''over the next five years at least, we have no intention to divest even a minority stake.'' At the same time, he indicated the company was in talks with a domestic branded formulation company for acquisition.

''It is very preliminary. The company, which is not listed, will be around Rs 40 crore. It may add Rs 30 crore to APL revenue.'' UNI