Industry

Aurobindo to buy R&D assets of U.S. vaccine firm

more-in

Pharma major to pay $11.29 mn in cash

Aurobindo Pharma, through a step-down subsidiary in the U.S., is acquiring certain R&D (research and development) assets of U.S. clinical-stage vaccine development firm Profectus BioSciences Inc.

The assets are to be acquired for an upfront cash consideration of $11.29 million, with potential earn-outs on achieving certain milestones, the Hyderabad-headquartered drugmaker said on Thursday.

A filing by Aurobindo Pharma said Auro Vaccines LLC, a wholly owned subsidiary of Aurobindo Pharma USA Inc, which, in turn, is a 100% subsidiary of the company, has entered into a definitive agreement to acquire certain business assets from Profectus BioSciences Inc. which is into design and development of preventive and therapeutic vaccines.

The acquisition will provide access to proprietary and innovative technology platforms for prophylactic and therapeutic use along with the global R&D centre, according to the company.

Also, it will lead to the enhancement of R&D capabilities and expertise in developing newer vaccines from basic discovery research into USFDA-approved products.

“We are acquiring R&D and product development assets that would develop products for commercialisation by the company,” Aurobindo Pharma said.

The closing of the transaction, subject to government approvals and third party consents, is expected in the first half of 2020.

In recent years, Aurobindo Pharma had initiated and completed a few acquisitions, including that of Canadian generic pharma firm Apotex’s commercial operations and certain supporting infrastructure in five European countries. Among the biggest acquisitions, by Indian pharma companies, is its acquisition of dermatology and oral solids businesses from Sandoz Inc., USA, a Novartis Division, for $900 million, which is awaiting the nod of U.S. Federal Trade Commission.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Dec 10, 2019 12:20:39 AM | https://www.thehindu.com/business/Industry/aurobindo-to-buy-rd-assets-of-us-vaccine-firm/article30109772.ece

Next Story