Aurobindo to buy 7 products from US firm in $300-million deal

By: |
Hyderabad | Published: January 18, 2019 4:37:09 AM

Acrotech Biopharma, a wholly-owned subsidiary of Aurobindo Pharma USA, has entered into a definitive agreement to acquire seven marketed oncology injectable products, intellectual property and commercial infrastructure from the US-based Spectrum Pharmaceuticals, a global branded oncology company for $300 million.

pharma sector, pharma industryThe net sales of the acquired business were 6.2 million for 2017 and estimated sales for 2018 were 5 million, the company said. (Representative image: Reuters)

Acrotech Biopharma, a wholly-owned subsidiary of Aurobindo Pharma USA, has entered into a definitive agreement to acquire seven marketed oncology injectable products, intellectual property and commercial infrastructure from the US-based Spectrum Pharmaceuticals, a global branded oncology company for $300 million. The company said that it will pay $160 million upfront in cash and the rest on achieving regulatory and sales milestones for the products. The acquisition will help the Aurobindo Pharma to enter the branded oncology market.

“The acquisition provides new opportunities to grow the business by launching innovative branded products in oncology, readily available infrastructure for oncology brands and experienced manpower in branded oncology. Besides, it will launch platform for future products, opportunity to develop follow on branded products, future synergy with internal development and external products leveraging this commercial infrastructure and support,” the company said.

The net sales of the acquired business were $116.2 million for 2017 and estimated sales for 2018 were $105 million, the company said. The acquired business is expected to generate a revenue of around $100 million for the first 12 months after the completion of the transaction. The transaction, which is subject to regulatory conditions, is expected to close within 90 days.

Also read: Investing in the stock market? Ten rules to keep in mind at all times

The company has been expanding in the US and Europe largely through acquisitions in several key markets. Last year, the company agreed to purchase Novartis unit Sandoz’s dermatology and generic business for $1 billion. It had also signed a pact to acquire the commercial operations and infrastructure assets of Canadian pharmaceutical company Apotex International in five European countries for 74 million euros.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop