PV Ramprasad Reddy, one of the founder promoters of Hyderabad-based Aurobindo Pharma Limited, has been appointed as executive chairman of the company's US subsidiary, Aurobindo Pharma USA Inc, effective December.
The appointment comes on the back of renewed focus on US operations, particularly on R&D and manufacturing activities by Auro Life LLC, a 100 per cent subsidiary of Aurobindo Pharma USA Inc.
The company on Monday informed the BSE that the board of directors had approved the appointment subject to the approval of the shareholders at the extraordinary general meeting scheduled on September 27.
Auro Life had set an ambitious target of becoming a leading US-based generic drug-maker in speciality and niche product areas with a target to obtain over 70 ANDAs (abbreviated new drug applications) and launch a similar number of products in the US market.
Aurobindo's formulations business grew by just 5 per cent in the first quarter of the current financial year to Rs 654.6 crore from Rs 622.6 crore in the corresponding quarter last year (active pharmaceutical ingredients business grew 27 per cent). While the US sales contributed 50 per cent to the formulations revenues with close to 20 per cent growth, Europe and the rest of the world grew 36 per cent during the same period.
The US sales of the parent company too were impacted by the import alert declared on one of its manufacturing units by the US Food and Drugs Administration (FDA) last year. Reddy's new appointment comes along with his relinquishing executive responsibilities as a whole-time director in the parent company as well.
It may be recalled that in June Ramprasad Reddy had resigned as company's executive chairman in line with the plans to bring in professional management at the top level. In his place, K Raghunathan, a management consultant associated with the company affairs, was appointed as non-executive chairman.
Ramprasad Reddy will shift base to the US. The company currently operates a $50 million manufacturing facility through Auro Life at Dayton, New Jersey.