Muted Q1 For Aurobindo But Outlook Firm; Don’t Expect ‘Exotic’ M&A

10 Aug 2017

Aurobindo Pharma reported a subdued Q1 but investors remained upbeat on the firm’s prospects as it transitions to a larger complex generics play. The company also emphasized its “disciplined” M&A approach; it has no interest in chasing “exotic” deals.

Game changer — AUROBINDO'S OUTLOOK APPEARS STRONG

Aurobindo Pharma Ltd. reported a 2.3% dip in revenues to INR36.78bn ($576m) for the first quarter ended June impacted by pricing pressure on select businesses in the US, the appreciation of the rupee and disruption on account of implementation of India’s new Goods and Services Tax (GST) regime. Net profits declined by 11.4% to INR5.18bn.

US price erosion, which was seen in high single digits over the recent past, has now inched up to the...