Aurobindo to buy 7 oncology injectables from Spectrum Pharma1 min read . Updated: 19 Jan 2019, 08:50 PM IST
- The acquisition involves an upfront payment of $160 million in cash
- Acrotech Biopharma LLC, a wholly-owned subsidiary of Aurobindo Pharma USA Inc. will acquire the assets on a debt free and cash free basis
Mumbai: Aurobindo Pharma Ltd on Thursday said it has agreed to acquire a portfolio of seven branded oncology injectable products from Spectrum Pharmaceuticals Inc.
The acquisition involves an upfront payment of $160 million in cash, plus up to $140 million on achieving regulatory and sales-based milestones, the company said in a statement. The acquisition also gives Aurobindo a branded commercial infrastructure in the US, it added.
Acrotech Biopharma LLC, a wholly-owned subsidiary of Aurobindo Pharma USA Inc. will acquire the assets on a debt free and cash free basis.
“This acquisition is in line with our strategy to commercialize innovative proprietary medications," the company said.
“We are excited to jump-start our mission of helping cancer patients across the globe by delivering clinically differentiated medications and leveraging strategic partnerships," said Ashish Anvekar, president of Acrotech.
The acquisition will help Aurobindo enter the branded oncology market with a range of products that are well recognized by the oncology community. Aurobindo Group will also acquire a well-established and experienced branded commercial infrastructure to continue commercializing these brands.
Spectrum, as part of its strategic shift to focus on novel oncology drug development and commercialization of its two late-stage pipeline products, carved out its commercial business inclusive of seven marketed oncology injectable products, intellectual property and commercial infrastructure for sale. The revenue of the acquired business was around $116.2 million in the year ended December 2017 and estimated revenues in 2018 would be $105 million, the statement said.
“The acquisition announced today creates an ideal launch pad for Acrotech, and establishes our presence in the branded market, which is in line with our strategy to grow and diversify our business in the US. We look forward to deliver the benefits of this transaction to all our stakeholders including employees, patients, customers and healthcare providers across the US," said N. Govindarajan, managing director of Aurobindo.
The transaction is expected to close within 90 days of signing.
Ahead of the announcement, shares of Aurobindo Pharma fell 1.62% to ₹ 774.3 on BSE, while the benchmark Sensex gained 0.15%.