Moneycontrol Bureau
Shares of Aurobindo Pharma gained more than 2 percent intraday and Plethico Pharmaceuticals rallied 20 percent on Thursday on settlement agreement related to acquisition of Natrol, USA.
According to a media report, Aurobindo Pharma has alleged fraud by owners of Natrol bought by the company from Plethico Pharma, saying contracts worth USD 25 million were fictitious.
In a reply to the exchange today, Aurobindo Pharma said Natrol LLC owned by the company had approached the Delaware Bankruptcy Court on April 6, 2015 in respect of acquisition of assets of Natrol, USA regarding certain discrepancies and non-performance of obligations by erstwhile owners, Plethico.
Subsequently, discussions were held between Natrol LLC and Plethico group for resolution. Based on the discussions a settlement agreement has been reached, wherein Plethico group would assign USD 23.3 million in cash in milestone payments, certain global IP rights and other assets," it added.
Aurobindo's 100 percent subsidiary Aurobindo Pharma USA acquired the US-based neutraceutical company Natrol for USD 132.5 million through an auction process conducted by United States Bankruptcy Court for the District of Delaware in November, 2014.
The above acquisition was completed by Aurobindo Pharma USA Inc on December 5, 2014 and that included manufacturing assets, personnel, commercial infrastructure etc., including nutraceutical brands in USA of Natrol along with an agreement to take certain liabilities.
Meanwhile, Aurobindo has received final approvals from the US Food & Drug Administration (USFDA) to manufacture and market Atracurium Besylate injection, 10mg/mL, 5mL single-dose vials and 10mg/mL, 10mL multi-dose vials.
The approved ANDAs are bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Atracurium Besylate Injections USP of Eurohealth International Sarl.
Atracurium Besylate Injections are indicated as an adjunct to general anesthesia, to facilitate endotracheal intubation and to provide skeletal muscle relaxation during surgery or mechanical ventilation.
Aurobindo now has 11 ANDAs (represented by 8 product classes) approved out of Unit IV formulation facility in Hyderabad, India for manufacturing general injectable products and will be marketed and sold by Aurobindo's wholly owned subsidiary AuroMedics Pharma LLC.
At 11:47 hours IST, the scrip of Aurobindo Pharma was quoting at Rs 1,332.25, up Rs 9.10, or 0.69 percent while Plethico Pharmaceuticals was locked at 20 percent upper circuit at Rs 40.85 on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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