Aurobindo Pharma Limited — Q4 FY25 earnings call

normally, we don't comment on Revlimid sales or units or value. But yeah, like in fact, we have done whatever we planned to do. And we are only left with balance for the next year. But beyond that, I think I won't be in a position to comment in terms of the numbers. We haven't. In fact, like nothing has spilled from Q4 to the next year. It is just as planned.

Analyst probed for specific Revlimid sales figures and future trajectory, which management declined to provide, indicating sensitivity around this key product's performance.

Asked by Damayanti Kerai

In the China plant, already it has incurred some losses, and that will become break-even or slightly positive in the coming year. Dayton plant is going to commence the manufacturing on a commercial basis. They have manufacturing of course, and then we expect commercialization in the Q2 of the current fiscal. The Raleigh facility, we had an FDA inspection, and some issues were raised. We are addressing it proactively. The Raleigh plant does not have much contribution in terms of revenue currently, and we do not have any major product launches that is planned in the short term. So, we believe that this is not going to impact our numbers in a meaningful way.

Clarifies the financial impact and operational timelines of new manufacturing facilities in China and the US, and addresses regulatory issues at the Raleigh plant.

Asked by Damayanti Kerai

Shortages management, I would say one, meaning market intel to understand what's going short and addressing it by Aurobindo replacement products. At the same time, ensuring our own out-of-stock situation does not lead to shortages, meaning our enhanced supply chain efficiency, turnaround time at Malta, all these are very carefully being engineered. In my opinion, very strongly, yes, because the number of launches we made in FY25 were significant. But in FY26, more number of products are planned, and some of them are going to be loss of exclusivity products.

Provides detailed drivers behind the consistent strong growth in Europe and outlines the strategy for sustaining this momentum with new product launches.

Asked by Tushar Manudhane

The China plant last year was the first year. We have incurred a loss of around Rs. 35 crore plus. There are multiple opportunities which we are working on to improve the performance, coupled with the growth plans, which Murali has rightly explained by launching new products, the full year impact of the last year launches, etc., which will help to maintain the profitability.

Gives a specific financial figure for the initial losses of a new strategic facility and management's plan for its improvement.

Asked by Tushar Manudhane

FY26 is going to be muted in terms of growth per se, because obviously you said it right, Eugia-3 is yet to be cleared and there's no super star product which is going to come in FY26. But we expect FY26 to be in the similar levels as FY25, whether it is including or excluding Revlimid. But FY27 should be a great year. That is what we believe, that FY26, we will be in a position to clear all the issues with FDA. And FY27, we have significant launches and settlement-based launches that are planned.

Sets clear expectations for the injectable business, indicating a flat FY26 due to regulatory hurdles and product pipeline, but a strong recovery in FY27.

Asked by Neha Manpuria

So, Neha, to put it clearly, and if we are to make a profit as contemplated, we need to run the plant full capacity. We don't want to run the plant half of the capacity pending the approval, because it's a big plant. If some minor accident happens or etc., it will have a great impact which we don't want to take that risk. And second is, today on TV, I have seen that the COVID is once again coming back with all these things. Probably, government may start looking into that, giving the approval fast, that is there. And third, I understand from the industry, government is also working on the minimum import prices. If that happens, then it will be a good and ensure that we are not incurring losses and we will be able to achieve the profits as contemplated or planned earlier. I think when it comes to the government, we cannot give the timelines.

Addresses a critical operational disruption at the Pen-G plant, its impact on profitability, and the dependence on regulatory approvals, while also hinting at potential government support.

Asked by Neha Manpuria

Yeah, it is around US$ 400 million plus. So, Nitin, we expect '28 would be the inflection year for the biosimilar business. And the business will stabilize with about seven products in the regulated markets, both in Europe and possibly a couple of products in the US by 2030. So, you should look at '28 to 2030 as the years where you can see biosimilar business trajectory building up. I expect by 2030-31, the business would be anywhere between US$ 250 to around US$ 400 million in revenues.

Provides a long-term financial outlook for the biosimilar business, including significant investment, expected inflection year, and revenue targets, which is crucial for evaluating this growth driver.

Asked by Tarang Agarwal, Nitin Agarwal

So, the first question is fire accident. This fire accident happened in the coal yard near the conveyor belt. This has happened because of the self-ignition of the coal heap. What I understand from the technical people, the temperature on the surface vis-à-vis temperature inside the coal heap was very high, and that led to self-ignition of the coal. And this is very common if you really see in the cement industries, etc. But unfortunately, it was near the conveyor belt, which has impacted the conveyor belt, and that has been rectified. In the meantime, we also applied for the renewal as one year was over in April. So, we have subjected ourselves to the inspection. And in the meantime, this accident has happened and hence it could not be proceeded with. Now, we'll take it up with the PCB (Pollution Control Board). We cannot give a time frame, but certainly, everybody will look into this project positively. And third, in terms of the pricing, etc. 6-APA pricing, etc., I mean, if it is low, it's good. We can also take advantage of that, so that we can make more money than what we can anticipate by doing it ourselves, unless the minimum import price comes, etc. It's always better to take advantage of any opportunities coming in terms of reduced price.

Offers a detailed explanation of the Pen-G plant fire, the rectification efforts, the regulatory process for restart, and management's view on pricing dynamics for related products.

Asked by Shyam Srinivasan