European acquisitions to boost Aurobindo's revenues

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Aurobindo has applied for 26 Abbreviated New Drug Applications (ANDAs) in Europe, of which it has got regulatory approvals for 5. In the tough and regulated markets in Europe it takes a minimum of 36 months to get an approval, said company officials.

By acquiring Pharmacin International, which has a robust dossier support of over 200 product registrations for 63 customers in Europe, Aurobindo would get access to the large portfolio of products, which it has the potential to bring to the markets, the officials told Business Line. Similarly, Milpharm, a profit-making generic formulation company, owns over hundred approved marketing authorisations (MAs) by the Medicines and Healthcare Products Regulatory Agency, UK.The MAs are well diversified into various segments - CNS, CVS, GI, diabetology, anti-fungal, anti-bacterial, oncology etc.

In February 2006, Aurobindo acquired Milpharm Ltd, through its wholly owned subsidiary, Aurex Generics Ltd, UK, which entered into share purchase agreement with Whyte Group Ltd and Iracot Ltd to facilitate the buyout.

In the case of Pharmacin International, Agile Pharma, the wholly owned subsidiary of Aurobindo , entered into a similar agreement with Jerim and Jonghoud International to acquire 100% of the shares. The acquisition value was estimated to be marginally lower than Pharmacin's sales turnover of 6 million for the year 2006.

Aurobindo , which has during the past two years adopted a strategy of building a large portfolio of APIs and getting regulatory approvals in potentially lucrative markets in the US, Africa, Europe etc, markets over 180 APIs and 250 formulations. It has obtained approvals for over 35 ANDAs in the US, where it has filed 70 ANDAs and 100 Drug Master Files (DMFs). The gains from this strategy are expected to boost the company's revenues considerably in the next two years.

Taken from Business Line

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