Aurobindo Pharma to Launch European Supplies from China Facility Amid Growth Plans

Published: 18 Feb 2025

Author: Precedence Research

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Starting in April 2025, this leading drug maker in India will commence the supply of its products to Europe from the newly commissioned plant in China. The company has received European regulatory approvals to commence supply from its China facility, which began operations in late November 2024. Chinese facility designers, beginning in April, will build billing capability for predominantly European markets. In that regard, the European approval helps Aurobindo to augment its presence in the region with the cost efficiencies transformed from its facility in China. 

Also, the company is moving towards approvals for the U.S. market, which could further expand its revenue streams. Aurobindo Pharma anticipates significant revenue contributions from the China plant over the next two to three years, due to the growing demand for pharmaceutical products in Europe, combined with cost advantages accruing from manufacturing in China. Aurobindo Pharma is very optimistic about future business expansion relying on increased demand for pharmaceuticals in Europe and the cost benefits of manufacturing in China.

Biosimilars and Biologics Business Set for Major Growth

Aurobindo is making its mark in the biosimilars and biologics market quickly, where 3 products are approved by Europe and one by the UK, with an expectancy for one more this year. The company is looking at at least 7 biosimilar products to go fully commercial by 2027-28. Aurobindo Pharma would like to build a strong revenue base in the biosimilars business by 2028-30, an extension of its portfolio in the high-growth biologic drug segment. The company has a cautious strategy concerning the investment into biosimilars, ensuring that it builds up a very solid, competitive portfolio. Although consolidated net profit was lower by 10% year-on-year for Q3, revenue from the operations went up to Rupees 7979 crore. Increased investments in new manufacturing facilities, regulatory compliances, and product development particularly concerning biosimilars and biologics-have been around these factors attributing to this increase. This revenue increase would show the ability of the company to continue growth despite these costs.

Strategic Expansion and Future Outlook

Aurobindo Pharma is entering China for supplies destined for the European market to increase operational efficiencies and cost savings besides adding to the direct reach. This also aims to keep up with global market trends such as biosimilars and biologics, as these are the segments someone would be interested in for development and role in recent times. All the approvals have been now completed, and production ramp-up will soon be happening as it sets the course for continued growth for Aurobindo Pharma. 

This investment in manufacturing and product diversification may well turn out to be crucial elements in creating an edge in the Generics and biosimilars segments. All Regulation approvals, and the robust pipeline of biosimilars, keeping the long-term vision for growth, set Aurobindo Pharma to take advantage of ways to increase in the future. Although there has been a decline in profits recorded for the short term, revenues are growing, and predictions show that, strategically, it has reserved for future gains in both generic and biologics markets.