Aurobindo Pharma, which has set itself the target of turning a $1 billion company by 2010, plans to achieve this goal by targeting a market currently worth $250 billion.
That’s the total brand sales revenue of drugs on its product list now
HYDERABAD: Aurobindo Pharma, which has set itself the target of turning a $1 billion company by 2010, plans to achieve this goal by targeting a market currently worth $250 billion in brand sales across the globe.
The Hyderabad-based company has a whopping 248 drugs on its product list, 85% of which will be off-patent by 2010, providing it a huge potential opportunity.
Of the 119 Abbreviated New Drug Applications it has filed so far, 63 have already been approved, including 48 for the US. The company has already launched 26 drugs in the US market. The rest of the approvals are mostly for anti-retrovirals for the US market.
Not surprisingly then, notwithstanding the thinning margins in the US, the country will account for 50% of Aurobindo’s business by 2010, while the European Union and the rest of the world will account for 25% each.
Generics drug-makers from India who are chasing a piece of the action in the US market, have been confronted with the twin problem of wafer-thin margins, thanks to unhindered competition, even as a strengthening rupee has made life that much more difficult for them.
Given the market realities, Aurobindo is adopting a two-pronged strategy looking for volumes from the US market and higher margins from the non-US markets. At the same time, it is also concentrating on entering into nice molecules where price erosions have been only around 30% of the innovators product value.
For instance, 50% of the products that it is targeting are for lifestyle disease like central nervous system disorders. The balance are anti-bacterials and anti-retrovirals for attacking the AIDS virus.
“The US will continue to be the focus despite the pressures. We have been getting 6-7% market penetration despite competition though margins have been low due to competition,” the official said.
p_chitti@dnaindia.net
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