Aurobindo Pharma Ltd Thursday said it has acquired four biosimilar products from Swiss firm TL Biopharmaceutical AG of for an undisclosed amount.
As part of this agreement, TL Biopharmaceutical will supply all the developmental data for four molecules and Aurobindo Pharma or its affiliates will develop, commercialize and market these products globally.
The branded market size of the four biosimilars, three of which are monoclonal antibodies for cancer treatment, is “very promising”, Aurobindo Pharma said, adding that regulatory filing for these products is intended during 2020-22.
The Hyderabad-based is preparing to take the lead molecule, bevacizumab biosimilar, acquired from TL Biopharmaceutical for clinical trials in 2017. Bevacizumab is an anti-antiogenesis drug used in treating multiple cancers.
“This transaction is a strategic investment for future growth and will position Aurobindo as a strong player in the rapidly evolving biosimilars landscape. Building on these first four products licensed from TL, Aurobindo is expanding its diverse portfolio of eight more next wave of biosimilars,” the company said.
Aurobindo Pharma has set up a fully functional research and development (R&D) centre for biologics development and is also establishing a manufacturing facility in Hyderabad, Telangana, which is likely to be ready by September.
According to a separate release, Aurobindo Pharma reported a consolidated net profit of Rs578.59 crore in the quarter ended December, up 6.3% from Rs544.31 crore a year ago due to higher sales and decline in interest cost.
The company’s net sales rose 11.7% to Rs3,844.47 crore from Rs3,442.18 crore a year ago on account of good growth in US business.
The earnings were below market expectations as higher input costs, staff costs and other expenses weighed on operating margin. A Bloomberg poll of 25 analysts had estimated the company’s consolidated net profit at Rs611.5 crore for the December quarter.
Operating margin of the company declined marginally to 22.9% in the quarter from 23.3% a year ago. Interest cost fell to Rs14.26 crore from Rs22.70 crore a year ago.
“In Q3FY17, we have recorded good overall growth despite pricing pressure in select products. We remain focused on developing a differentiated and specialty product basket which will drive our future growth,” N. Govindarajan, managing director of Aurobindo Pharma said in the earnings statement.
The company’s formulation sales in the US rose 12% to Rs1,745.1 crore during the quarter on the back of new product launches, in both oral solids and injectable segments, and volume increase. Sales in Europe were up 9.2% at Rs855.4 crore. Total sales of active pharmaceutical ingredients (APIs) increased 11.6% to Rs775.9 crore.
In the December quarter, Aurobindo Pharma got 19 generic drug approvals in the US and it filed nine abbreviated new drug applications (ANDAs) with the US Food and Drug Administration (FDA)—five oral products and four injectables.
Source: Mint