In today’s briefing:
- Aurobindo Pharma (ARBP IN): Pain Continues in the U.S. Formulation Business
- Biosimilar deal with Viatris completes the value chain in its Biologics business
Aurobindo Pharma (ARBP IN): Pain Continues in the U.S. Formulation Business
- Aurobindo Pharma (ARBP IN) shares have corrected more than 40% from peak and are trading at discount to peers. The company’s U.S. business is under pressure, resulting in deteriorating profitability.
- We are not seeing any immediate respite in the U.S. formulation business. Hence, investors can avoid Aurobindo Pharma shares.
- However, value unlocking through stake sale in injectable business can be a near-term catalyst, resulting in relief rally in the stock.
Biosimilar deal with Viatris completes the value chain in its Biologics business
- BBL (a subsidiary of BIOS) will acquire Viatris’ Biosimilar business to create a vertically integrated company in the Biologics segment.
- With this acquisition, BBL will acquire the commercial infrastructure in developed/emerging markets, rights for all Biosimilar assets (including the in-licensed portfolio), and the option to acquire rights of bAflibercept.
- This also fills BBL’s gap in regulatory development and supply chain management of Biosimilars in the developed market.
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