Aurobindo Pharma: Value proposition intact, but consolidation can take longer

In this injectables space, Aurobindo pharma remains constructive and plans to grow from the current annual sales base of $400 million to 650-700 million in three years, backed by new plants in the US and Vizag.

Anubhav Sahu
August 16, 2021 / 02:23 PM IST
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Aurobindo Pharma (CMP: Rs 761, Market Cap: Rs 44,608 crore), like other US-focussed large-cap pharma companies, is experiencing an adverse pricing environment in America. The stock is under pressure because of this and also because of an expensive inorganic bet. Inorganic bet Aurobindo has entered into an agreement to acquire a 51 per cent stake in Cronus Pharma for Rs 420 crore. This will give Aurobindo a foothold in the $48-billion global animal health market. Cronus, a Hyderabad-based company, has built a...