Aurobindo Pharma Ltd. delivered in-line quarter at operational level. The company posted strong YoY growth in the anti-retroviral/rest of world segments and reported growth in the U.S. segment despite intensified competitive environment.
We cut our earnings per share estimates by 9%/3% for FY23/FY24, respectively, to factor in:
moderation in the Europe outlook,
higher operational cost and
lower other income.
We remain positive on Aurobindo Pharma aided by its:
strong abbreviated new drug application pipeline comprising limited competition products in oncology, biosimilars, topicals, transdermal patches, etc. and
ongoing efforts to improve the profitability of the Europe business.