Aurobindo Pharma - The Smart Investor

We expect EU to register CAGR of
around 21.0% over FY2010-12 to
`348cr driven by product launches and
the Pfizer contract
We expect revenues from the RoW to
post a CAGR of 19.1% to `294cr over
FY2010-12 and expect the AstraZeneca
contract to contribute Rs23cr in FY2012
Europe and RoW growing at steady pace
Aurobindo Pharma | Initiating Coverage
In Europe, APL has been developing its presence through licensing agreements
with the MNC’s and other generic players. In the UK, Netherland and Italy, APL
has a direct presence. The company is now targeting newer geographies, viz.
Romania, Spain, Yugoslavia and Bulgaria. During FY2006-10, the company’s EU
business registered CAGR of 51.6% to `237cr.
We expect EU to register CAGR of around 21.0% over FY2010-12 to `348cr
driven by product launches and the Pfizer contract. We expect the Pfizer contract to
scale up significantly from `2cr in FY2010 to `63cr in FY2012. Excluding Pfizer,
we expect overall sales to grow by 10.0% to `285cr in FY2012.
Exhibit 15: EU sales trend
(` cr)
45
Source: Company, Angel Research
Over FY2006-10, RoW registered CAGR of 26.2%. In FY2010, RoW contributed
6.1% to the company’s net sales to `207cr. We expect revenues from the RoW to
post a CAGR of 19.1% to `294cr over FY2010-12 and expect the AstraZeneca
contract to contribute Rs23cr in FY2012.
Exhibit 16: RoW sales trend
(` cr)
400
300
200
100
0
400
300
200
100
0
Source: Company, Angel Research
October 18, 2010 10
128
201 198
235
2
247
18
285
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
82
288
Pfizer Ex-Pfizer % of Sales
158
198 207 225
63
253
23
18
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Pfizer AstraZeneca Ex-Pfizer/Astra % of Sales
9.0
6.0
3.0
0.0
15.0
10.0
5.0
0.0
(%)
(%)