Aurobindo Pharma Arm Inks $25-Million Licence Deal With Global Player
The collaboration entails joint development of specific respiratory products, which will be co-exclusively commercialised.
Aurobindo Pharma announced on Saturday that its wholly-owned subsidiary, Aurobindo Pharma USA Inc., has entered into a collaboration and licence agreement with a global pharmaceutical company.
The agreement, signed on Friday, focuses on developing and commercialising products in the respiratory therapeutic segment.
As part of the agreement, Aurobindo Pharma USA Inc. will receive an upfront payment of $25 million on the effective date.
Both companies will share developmental costs equally, with Aurobindo's contribution capped at $90 million over the development period, estimated to span 3–5 years.
The collaboration entails joint development of specific respiratory products, which will be co-exclusively commercialised. The products will initially be manufactured at the partner’s facility, with Aurobindo retaining the option to undertake a technology transfer in the future.
The company highlighted several benefits of the agreement, including cost-sharing to mitigate financial risks, reducing the time required for product development, and diversifying its existing product portfolio.
Further terms of the agreement remain confidential. However, it was noted that the global pharma partner will have manufacturing rights, and Aurobindo will have specific rights for technology transfer and co-commercialisation.
Earlier on Friday, six prominent pharmaceutical companies, including Dr Reddy's Laboratories, Aurobindo Pharma, and Hetero Labs, had signed memorandums of understanding with the Telangana government to set up facilities in the Pharma City near Hyderabad, the government announced.
On Nov. 12, CuraTeQ Biologics Pvt., an Aurobindo Pharma subsidiary, was given a Good Manufacturing Practice certificate of compliance for its biosimilars manufacturing facility from the European Medicines Association.
On Friday, shares of the company closed 0.30% higher at Rs 1,223.70 per share, compared to a 2.39% advance in the NSE Nifty 50. The stock has risen 18.95% year-to-date and 12.89% over the past 12 months.
Twenty out of the 29 analysts tracking the pharma company have a 'buy' rating on the stock, five recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 25%.
