Aurobindo Pharma expects to earn 25 per cent revenue from the custom research business

Under the reworked strategy model, Aurobindo Pharma looking at expanding its presence in the custom research business.


Hyderabad, August 8, 2012: The Indian pharma company Aurobindo Pharma is planning to bank 25 per cent of its annual revenues from the custom research and manufacturing (Crams) business over the next five years.


It is worth noting here that the company does not get any revenue from the Crams business at this point as it only saw the first contract materialising last year. AuroSource, which is the custom research and manufacturing division of the pharma major is looking at long term contracts from big pharma companies and is eager to work with emerging names on new molecules.


It is no secret that the Crams business has better margins that the generic drug sales. It is expected that this reworked strategy will help the company in improving its revenue base and bottom line.


In the latest annual report, the chairman PV Ramaprasad Reddy said the company would focus on complex chemistry and high entry barrier products and will refocus on APIs to step up margins and develop markets for high-value top-ten products both in APIs and formulations.


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