Company was founded in 1986 by Mr. P. V. Ramaprasad Reddy, Mr. K. Nityananda Reddy and a small group of highly commited professionals; Aurobindo Pharma became a public company in 1992. Aurobindo Pharma Limited based at Hyderabad, India manufactures generic pharmaceuticals and Active Pharmaceutical Ingredients. Company is one of the world's top 5 manufacturers of semi synthetic penicillin’s. Company has Asia's largest sterile API facility. It is one of India’s top 5 pharma companies ranked in terms of turnover.

It has 12 manufacturing plants conforming to GMP / ISO regulations and an extremely well equipped R&D facility. Company has invested significant resources in building a mega infrastructure for APIs and formulations to emerge as a vertically integrated pharmaceutical company. Aurobindo’s 5 units for APIs and 4 units for formulations are designed for the regulated markets. Company has accelerated the DMF/ANDA filings program in its efforts to build a broad product portfolio for the regulated markets. Company has geared up in the ARV segment by clinching more approvals under the PEPFAR program. The World Health Organization (WHO), Geneva, has also included Aurobindo’s products in its list. Company has made a small beginning under PEPFAR program and it hopes to bag good orders under the program. Company has a large infrastructure for developing innovative technologies, creating an intellectual property knowledge base in chemical synthesis and drug delivery systems. Company’s 50% of sales volume contributed through exports to over 100 countries.

Products & Services—

Company is one of the largest Active Pharmaceutical Ingredients or Bulk Actives manufacturers in Asia; Aurobindo Pharma has commercialized over 100 APIs. Company’s capabilities grown over 700% in the last six years and uncompromising product quality underline the core competence of the company. Company applies high Quality Management in its products manufacturing. Company derives its volume in API from the following segments: ANTI-DEPRESSANTS, ANTI-CONVULSANTS, HYPNOTICS & ANTI-PSYCHOTICS, ANTI-HYPERTENSIVES, BETA BLOCKERS, THIAZIDE DIURETIC, ANTI-THROMBOTIC, STATINS, ANTI-DIABETICS, BPH-TREATMENT, ANTI-EMETICS, ANTI-ULCERANTS, ANTI-RETROVIRALS, ANTI-VIRALS, MACROLIDES, ANTI-FUNGALS, QUINOLONES, ANTI-HISTAMINES, ANTI-CHOLINERGIC, ANTI-OSTEOPOROSIS, ANTI-INFLAMMATORY, MUSCLE RELAXANT, CEPHALOSPORINS, PENICILLINS, ANTI-FUNGALS etc.

Research & Development—

Company’s R & D strengths are in developing intellectual property in the area of non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo Pharma is developing new drug delivery systems, new dosage formulations, applying new technology for better processes. The APL Research Centre, located on the outskirts of Hyderabad, is busy making knowledge intensive initiatives. The Center covers an area of
100,000 square feet, and provides a nurturing environment to a multi-disciplinary team of over 450 scientists striving for excellence. The Centre meets CGLP requirements, and is focused on the areas of organic synthesis, analytical research, dosage form development, pharmacology, bio-equivalence studies and drug delivery systems.

Multinational Companies looking to outsource products and services regard Aurobindo Pharma as a valuable partner. Tie up with Aurobindo Pharma gives the customer competitive edge through faster product development and optimized costs. Company can help reduce the transition time between drug discovery, development and entry into the market. The customer gains with reproducible, innovative solutions to synthetic chemistry problems.

Company enjoys world’s largest product portfolio in Anti-AIDS medicines. At current market price, stock is trading at 9.71 P/E multiple of its FY2011 Estimated EPS. We recommend investors to buy “Aurobindo Pharma Limited” for medium to long-term investment horizon.