Aurobindo Pharma Forays Into Indonesian Market With Brand Acquisitions

Aurobindo Pharma's entry into the branded formulation market of Indonesia is in line with most Indian pharma companies looking beyond the U.S. markets as a part of their capital-allocation strategy to attain consistent growth after a gestation period.

This is despite a recovery that was seen in the U.S. market in the first quarter of the year in terms of easing of price-erosion pressures and in the light of drug shortages.

Manoj Garg, director of investments at WhiteOak Capital Management, had told BQ Prime earlier that while companies would have to build their sales, marketing and distribution network, steady growth and strong profitability outlook in branded markets makes them attractive.

In these markets, realisations are good and prices are stable like India, Garg had said. "Though it takes time to build front-end infrastructure, once you are there, profitability is very good."

Shares of Aurobindo Pharma were trading 0.25% lower at Rs 865.55 apiece on the BSE compared to an almost flat benchmark Sensex at 11:17 a.m.