Aurobindo mulls sale of fast-growing API unit

Aurobindo Pharma has confirmed the rumors. The Indian company is considering a restructuring, including the possible sale of its active pharmaceuticals ingredient and formulations businesses. A committee of board members will analyze its options for an overhaul, the company said, aiming for more growth--and more value from--the already expanding API-and-formulations unit.

According to its latest financials, Aurobindo grew overall revenues by 22.5 percent, the Economic Times reports, but the formulations business grew faster, at more than 30 percent. Formulations now makes up 57.3 percent of the company's gross sales, and by fiscal 2013, is expected to account for 70 percent.

The restructuring options include a spinoff or demerger, the company said. The board committee is expected to make its recommendations within three months, the Wall Street Journal reports.

Other Indian drugmakers have restructured of late, including Piramal Healthcare, which sold its Indian formulations business to Abbott Laboratories last year for $3.72 billion. As the WSJ notes, Glenmark Pharmaceuticals demerged its generics business from its specialty pharma operations.

- get the story from the WSJ
- see the Economic Times article