Aurobindo Pharma (ARBP IN): Buy: Marching towards USD2bn US sales goal

研报英文原文证据摘录

Aurobindo Pharma (ARBP IN): Buy: Marching towards USD2bn US sales goal

indo currently 52-WEEK PRICE (INR)

has no presence in CS). We think execution will be critical to realise deal synergies from 1700.00

visible growth drivers: a) improving utilisation of Lannett’s US plant (currently 35%

utilisation), b) cost optimisation (procurement synergies, deletion of duplicate costs (e.g. 1325.00

corporate office overheads), and c) upcoming material launches (e.g. launch of gAdvair 950.00

06/25 12/25 06/26

inhaler in 2QFY27 which could be a USD60-65m p.a. sales opportunity). Besides Target price: 1580.00

gAdvair, Lannett has two key inhalers in the pipeline - gSpiriva Handihaler (ANDA filed High: 1546.70 Low: 1022.20 Current: 1443.70

Source: LSEG IBES, HSBC estimates

for FDA review) and gFlovent Diskus (under development), see exhibit 1. Aurobindo

expects to improve Lannett’s EBITDA margins to c20% within a year of integration (from

Damayanti Kerai*

c14% currently) helped by new launches, improved supplies and cost rationalisation. Analyst, India Healthcare

HSBC Securities and Capital Markets (India) Private

Retain Buy with unchanged of INR1,580: We are constructive on the Lannett deal but Limited

damayantikerai@hsbc.co.in

await further clarity on the pipeline and financials before incorporating it in our estimates. +91 88 7933 5196

At the time of deal announcement in July 2025, Aurobindo indicated the Lannett portfolio Bhavya Gandhi*

to be EPS accretive, adding INR5 per share to its EPS (c7% accretion to our FY27 EPS Associate, Equity Research

estimate). Ex-Lannett, the outlook for Aurobindo’s US sales (43% of sales in FY26) and Limited

Europe sales (31% of sales) remains healthy led by new launches and higher volumes. bhavya.gandhi@hsbc.co.in +91 22 40891593