Aurobindo arm to buy 7 cancer drugs of Spectrum Pharma

Aurobindo Pharma has entered into a definitive agreement to acquire a portfolio of seven branded oncology injectable products from the US-based Spectrum Pharmaceuticals Inc for $300 million. Acrotech Biopharma LLC, which is a wholly-owned subsidiary of Aurobindo Pharma USA Inc, which in turn is an arm of Hyderabad-based Aurobindo Pharma, will be acquiring the portfolio on a debt- free and cash-free basis. The acquisition will be done with an upfront purchase price of $160 million in cash plus $140 million on achieving regulatory and sales-based milestones. It also brings in an experienced branded commercial infrastructure in the US. It is expected to generate a revenue of around $100 million for the first 12 months after completion of the transaction for Aurobindo. N. Govindarajan, Managing Director, Aurobindo Pharma, said in a statement: “The acquisition creates an ideal launch pad for Acrotech and established our presence in the branded market, which is in line with our strategy to grow and diversify our business in the US.” The acquisition will help Aurobindo Group enter branded oncology market with a range of products that are well recognised. The commercial infrastructure, which comes along with the buy, will help Aurobindo continue commercialising these products, the company said. The milestone period set for products lasts for five years post the closing of the transaction, which is expected within 90 days of signing the agreement subjected to regulatory clearances.