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Last Updated : Jan 17, 2019 08:57 PM IST | Source: Moneycontrol.com

Aurobindo buys 7 oncology injectable drugs in $300 million deal

These products had generated $76.4 million in combined sales during the first nine months of 2018.

Viswanath Pilla @viswanath_pilla
 
 
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Viswanath Pilla
Moneycontrol News

Aurobindo Pharma said on January 17 that its wholly owned subsidiary Acrotech has signed a definitive agreement to acquire a portfolio of seven branded oncology injectable products from Spectrum Pharmaceuticals in a $300 million deal.

Aurobindo will pay $160 million in cash upfront and $140 million will be paid after achieving regulatory and sales-based milestones.

The acquired portfolio of the injectables includes Fusilev (levoleucovorin), Folotyn (pralatrexate injection), Zevalin (ibritumomab tiuxetan), Marqibo (vincristine sulfate liposome injection), Beleodaq  (belinostat) for injection, Evomela (melphalan) for injection and Khapzory (levoleucovorin).

The products generated $76.4 million in combined sales in the first nine months of 2018. The acquisition brings in an experienced branded commercial infrastructure in the US.

Aurobindo, India's second largest drug maker, said that the transaction will be EPS accretive from first full year of ownership.

The portfolio is expected to generate around $100 million in revenue for Aurobindo in the first 12 months after completion of the deal.

"This acquisition is in line with our strategy to commercialise innovative proprietary medications," Aurobindo said in a statement.

Commenting on the transaction, N Govindarajan, Managing Director of Aurobindo, said that the acquisition creates an ideal launch pad for Acrotech, and establishes our presence in the branded market, which is in line with the company's strategy to grow and diversify 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," Govindarajan said.

The deal would close within 90 days following the completion of customary and regulatory conditions, including FTC clearance.

Aurobindo's acquisition comes at a time when Indian drug makers are facing steep price erosion in plain vanilla generic drugs in the US. They are increasingly scouting for specialty and complex drug assets that have limited competition and are protected by patents.
First Published on Jan 17, 2019 08:57 pm
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