Aurobindo Pharma on Thursday said it will acquire a portfolio of seven branded oncology injectable products from US-based Spectrum Pharmaceuticals Inc in a $ 300 million deal (over Rs 2,100 crore) which includes an upfront cash payment of $ 160 million.
According to the definitive agreements inked between the two companies, Acrotech Biopharma LLC, a subsidiary of Aurobindo, will pay an upfront purchase price of $ 160 million in cash plus up to $ 140 million on achieving regulatory and sales-based milestones for the seven products.
Acrotech will be acquiring the product portfolio on a debt free and cash free basis, Aurobindo Pharma Ltd said in a regulatory filing.
The acquisition will help Hyderabad-based company to enter the branded oncology market in the US with a range of products which are well recognised in the segment, it added.
As part of the deal, the drug firm will also acquire a well-established and experienced branded commercial infrastructure in the US to continue commercialising these brands, the company said.
"The acquisition announced today creates an ideal launch pad for Acrotech, and establishes our presence in the branded market, which is in line with our strategy to grow and diversify our business in the US," Aurobindo Managing Director N Govindarajan said.
"The transaction is expected to close within 90 days of signing following the completion of customary as well as regulatory conditions, including FTC clearance," he added.
The product portfolio is expected to generate a revenue of around $ 100 million for the first 12 months after completion of the transaction for Aurobindo, the company said.
Shares of Aurobindo Pharma Thursday ended 1.62 per cent down at Rs 774.30 on the BSE.