Aurobindo Pharmacy terminates the largest outbound Pharma deal with Sandoz Inc.

CIOReviewIndia Team | Thursday, 02 April 2020, 12:22 IST

Aurobindo Pharmacy terminates the largest outbound Pharma deal with Sandoz Inc

Aurobindo Pharma Limited’s planned acquisition of the US generic oral solids and dermatology businesses of Sandoz Inc., a unit of Novaritis has fallen apart. Hyderabad based generic drug manufacturer in a stock-exchange filing stated that the deal was mutually terminated. This was because the approval from US Federal Trade Commission for the transaction was not obtained within the expected time period.

Today, the Indian markets are closed. Amidst the coronavirus pandemic, shares of Aurobindo Pharma on April 1st closed at Rs 392.15, down by 5.06 per cent on the Bombay Stock Exchange.

In September 2018, Aurobindo Pharma had agreed to purchase Sandoz’s US dermatology and generic pills business for as much as 1 billion dollars. This was one of the biggest overseas acquisition by an Indian drug manufacturer, at the time of its announcement.

The transaction involved a payment of 900 million dollars which is about (6470 crores in Indian rupee) in cash. The acquisition comprised about 300 products, three manufacturing facilities in the United States and Eon Labs Inc. The deal also entailed potential earn out payments of 100 million dollars on products in the pipeline.

The company said that Aurobindo Pharma’s US business clocked at 21 per cent growth to Rupees 9030.7crores in 2018-2019 on the strong performance of its key business segments, including orals, injectables OTC drugs and dietary supplements.

The US business accounted for 46 per cent of Aurobindo’s revenue during the period and in the last fiscal year, Aurobindo also launched 50 new products, which included 12 injectables in the US market.

Aurobindo Pharmacy also made some significant bets in the past years and in January 2019, the company had agreed to purchase seven branded oncology injectables from US-based Spectrum Pharmaceuticals Inc. for up to 300 million dollars.

In the year 2018, the Indian pharma company signed an agreement to acquire the commercial operations and certain supporting infrastructure assets of Apotex International Inc, a Canadian pharmaceutical company, in five European countries for 74 million euros.

The Indian drug manufacturing company is marketing its products for antibiotics, antiretrovirals gastroenterological, anti-allergies and anti-diabetics therapeuticareas in over 150 countries.

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