Plethico to pay Aurobindo Pharma $23.3 mn to settle dispute

Aurobindo Pharma today said Plethico will pay it USD 23.3 million to settle a dispute related to the acquisition of US-based Natrol.
Aurobindo Pharma Ltd's 100 per cent subsidiary Aurobindo Pharma USA completed acquisition of Natrol LLC from Plethico for USD 132.5 million in December 5, 2014.
On April 6, 2015, Natrol LLC had approached the Delaware Bankruptcy Court with certain discrepancies and non- performance of obligations by erstwhile owner Plethico with regard to the deal.
"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," Aurobindo Pharma said in a BSE filing.

Aurobindo Pharma had emerged as the highest bidder for acquisition of Natrol Inc, USA.
The acquisition included manufacturing assets, personnel, commercial infrastructure, including nutraceutical brands in USA of Natrol along with an agreement to take certain liabilities.
Shares of Aurobindo Pharma were trading up 0.56 per cent at Rs 1,330.55 in the afternoon trade on BSE.