Lyfius Pharma Invests 25 Billion Rupees to Build the World's Largest Penicillin G Factory

Lyfius Pharma Pvt Ltd, a manufacturer of penicillin G, announced the launch of its state-of-the-art manufacturing facility in Kakinada, Andhra Pradesh, on October 29th.  The company has invested 25 billion rupees in the plant, which has an annual production capacity of 15,000 tons, under the Production Linked Incentive (PLI) scheme.

The facility was inaugurated online by Prime Minister Narendra Modi, with the presence of several Indian ministers, including Chemicals and Fertilizers Minister Jagat Prakash Nadda, Labour and Employment Minister Mansukh Mandaviya, and others.  Lyfius Pharma's director, MV Rama Krishna, highlighted the significance of the Pen-G factory's launch as a milestone in strengthening local production and reducing reliance on imported key drug components.  The investment underscores the company's commitment to the government's vision of "Atmanirbhar Bharat" (Self-Reliant India), aiming to establish India as a global pharmaceutical manufacturing hub.

The company expects commercial production to accelerate in the fiscal year 2025, enhancing domestic output of key starting materials (KSM), drug intermediates (DI), and active pharmaceutical ingredients (API).  Lyfius Pharma, a subsidiary of Aurobindo Pharma, operates the advanced facility in Andhra Pradesh, which is one of India's largest fermentation-based antibiotic intermediate plants, featuring large-capacity fermenters and automated starch and glucose plants.

The project feasibility report outlines the production of 2,000 tons/year of 7-ACA, 15,000 tons/year of penicillin G, 198,000 tons/year of glucose, and 4,200 tons/year of 6-APA, with co-line products including 1,800 tons/year of amoxicillin trihydrate (enzyme method) and 1,800 tons/year of ampicillin trihydrate (enzyme method).

Aurobindo Pharma's Q2FY2025 financial results show an 8.0% year-over-year increase in revenue to 77.96 billion rupees, with an EBITDA of 19.54 billion rupees before research and development, a profit margin of 25.1%, and a net profit of 8.17 billion rupees, up 8.6%.  The company's performance indicates positive growth trends, particularly in Europe and growth markets, despite a 22.8% decline in ARV (antiretroviral) business revenue.  The API business maintained stable revenue at 11.56 billion rupees, contributing 14.8% to total revenue.