Aurobindo Pharma Faces USFDA Scrutiny Over Telangana Facility

The US health regulator recently completed an inspection at Aurobindo Pharma’s injectable facility, operated by its subsidiary Eugia SEZ Pvt Ltd, situated in Telangana’s Mahabubnagar district. The inspection took place from February 19 to February 29. Aurobindo Pharma disclosed on June 27 that the Eugia SEZ injectable facility has been issued an Establishment Inspection Report (EIR), categorizing it under Voluntary Action Indicated (VAI) status. Earlier this month, Aurobindo Pharma finalized a Master Service Agreement (MSA) with Merck Sharp & Dohme (MSD) to collaborate on the production of biological products.

The partnership focuses on expanding contract manufacturing capabilities for biological products, aiming to cater to both local and global markets. During their interview with CNBC-TV18, Satakarni Makkapati, CEO of Biologics, Vaccines, and Peptides Businesses, and Santhanam Subramanian, CFO of Aurobindo Pharma, elaborated on the collaboration.

In the quarter ending March 31, 2024, Aurobindo Pharma demonstrated robust financial performance. The company's consolidated net profit surged to ₹909 crore, marking an impressive 79.6% increase compared to ₹506 crore in the corresponding period last year. Consolidated revenue from operations also saw substantial growth, rising by 17.1% year-on-year to reach ₹7,580 crore in Q4 FY24, up from ₹6,473 crore in Q4 FY23.

Aurobindo Pharma's Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) soared to ₹1,687 crore, reflecting a significant 68.3% rise from ₹1,002 crore in the previous year's fourth quarter. The EBITDA margin expanded by 677 basis points to 22.3% in the March quarter, compared to 15.5% in the same period last year. Despite these impressive financial results, Aurobindo Pharma's shares were trading flat, declining marginally by 0.8% to ₹1,191.1 per share on the BSE as of 12:50 pm on Thursday.