The acquisition is in line with Aurobindo’s strategy to grow and diversify our business in the US
Aurobindo Pharma (BSE: 524804 and NSE: AUROPHARMA) (‘Aurobindo’), a marketer and manufacturer of generic pharmaceuticals and active pharmaceutical ingredients, announces the signing of a definitive agreement to acquire certain assets from Sandoz, USA (‘Sandoz’), a Novartis Division, comprising of a dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure in the US.
The acquisition will be on debt free and cash free basis and will be made through its wholly owned subsidiary, Aurobindo Pharma USA. Aurobindo and Sandoz will enter into a transitional services agreement to support the ongoing growth plans of the businesses being acquired by Aurobindo.
The acquired generic dermatology portfolio covers a wide range of therapeutic areas including topical antibiotics, gynaecological and dermatological antifungal agents, anti-acne agents, local anaesthetic analgesics, anti-itch, and a dermatological chemotherapeutic agent.
The acquisition enhances Aurobindo’s market leading pipeline of Abbreviated New Drug Application (ANDA) filings with additional pipeline projects, including ones that have already been filed, products under development, and first-to-file opportunities which have the potential to be exclusive.
Commenting on the transaction, N Govindarajan, Managing Director of Aurobindo, said, “The acquisition announced recently is in line with our strategy to grow and diversify our business in the US. Acquiring these businesses from Sandoz will allow us to further expand our product offering and to become a leading player in the generic dermatology market. Overall the transaction will position Aurobindo as the 2nd largest dermatology player and the 2nd largest generics company in the US by prescriptions.”
Govindarajan added, “We look forward to delivering the benefits of this transaction to all ourstakeholders including employees, patients, customers and healthcare providers across the US.”
The transaction is expected to close in the course of 2019 following the completion of customary closing conditions, including FTC clearance.