(Reuters) -Indian drugmaker Aurobindo Pharma reported a 3.8% rise in profit on Wednesday, helped by steady domestic demand, especially for its anti-retroviral drugs for HIV infections.
Consolidated net profit in the second quarter rose to 8.48 billion rupees ($96.48 million) from 8.17 billion rupees a year ago.
Revenue rose 8.37% to 82.86 billion rupees.
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KEY CONTEXT
India’s generic drugmakers get a significant portion of their revenue from North America, where fierce competition has led to lower prices, weighing on their margins. The U.S. contributed 43.9% to Aurobindo’s quarterly consolidated revenue, according to the company’s presentation.
U.S. President Donald Trump had levied tariffs on import of branded and patented drugs from October, unless the companies were building a plant in the country. However, the policy had then excluded generic drug imports, offering a reprieve to the sector.
Aurobindo Pharma has also gained from strong demand for its anti-retroviral drugs to treat HIV patients.
Still, intense competition in the North American generics market continues to pressure drugmakers’ margins.
Larger rivals Cipla and Dr Reddy’s posted weak sales in the region this quarter.
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Aurobindo
