With key projects moving into commercial production, the drugmaker has stronger near-term growth visibility and also a long runway
Aurobindo Pharma has developed multiple growth opportunities which should play out both in the long term and short term. As the company has commercialised most ventures, its risk reward is getting more favourable and may offer value for investors, with adequate margin of safety on dips from current price levels. The long-tailed development of different growth segments should ensure a long growth runway for the company.
The current revenue drivers include the US — supported by the Lannett acquisition, Europe — supported by the Chinese facility, and India — supported by the Pen-G facility.
The US (43 per cent of revenue) is the largest segment for Aurobindo, which generated $1.6 billion in revenues in FY26. Owing to gRevlimid loss during the year, the segment reported a 7 per cent year-on-year decline in FY26 revenue growth. However, the company aspires to generate $2 billion in revenues in the near term. Its facilities in Dayton and Raleigh, which are focused on oral solids and complex generics, respectively, can aid such growth.
Source: Thehindubusinessline
