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Aurobindo arm to acquire 7 oncology drug from Spectrum for $300 million


Aurobindo arm to acquire 7 oncology drug from Spectrum for $300 million

The portfolio is expected to generate a revenue of around $100 million for the first 12 months after completion of the transaction for Aurobindo. The transaction will be EPS accretive from the first full year of ownership.

Hyderabad: Aurobindo Pharma Limited recently announced the signing of a definitive agreement to acquire a portfolio of seven branded oncology injectable products from Spectrum Pharmaceuticals Inc. for $300 million. The acquisition also brings-in an experienced branded commercial infrastructure in the US.

The portfolio is expected to generate a revenue of around $100 million for the first 12 months after completion of the transaction for Aurobindo. The transaction will be EPS accretive from the first full year of ownership.

As per the terms of the deal, Aurobindo will make for an upfront purchase price of $160 million in cash plus up to $140 million on achieving regulatory and sales-based milestones. The acquired portfolio includes seven branded oncology injectable products which are currently being marketed. The acquisition also brings-in an experienced branded commercial infrastructure in the US.

Acrotech Biopharma LLC (“Acrotech”), a wholly-owned subsidiary of Aurobindo Pharma USA Inc., which in turn a wholly-owned subsidiary of Aurobindo Pharma Limited, will be acquiring the portfolio on a debt free and cash free basis. This acquisition is in line with the strategy to commercialize innovative proprietary medications.

The acquisition will help Aurobindo Group to enter the branded oncology market with a range of products which 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.

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Commenting on the transaction, Dr Ashish Anvekar, President of Acrotech, 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. We look forward to welcoming an experienced team of employees from Spectrum who are essential to our mission.”

Commenting on the transaction, Mr N. Govindarajan, Managing Director of Aurobindo, 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.”

Mr Govindarajan added, “We look forward to delivering the benefits of this transaction to all our stakeholders including employees, patients, customers and healthcare providers across the US.

The transaction is expected to close within 90 days of signing following the completion of customary as well as regulatory conditions, including FTC clearance.

Read Also: Aurobindo Pharma gets USFDA nod for Potassium Chloride extended-release tablets


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