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Aurobindo Pharma gains after American subsidiary inks product development pact with global pharma major
25-Nov-24   09:51 Hrs IST

The agreement is for development of specific products across respiratory therapeutic area and their commercialisation.

The agreement is for an initial estimated development duration of three- five years. Both the parties will collaborate with respect to the development of specific products across respiratory therapeutic area.

Both the parties will co-exclusively commercialize the product. The products, once commercialized, will be manufactured at partner's facility and will be marketed by both the parties. Aurobindo has an option to technology transfer at a future date.

A cost-sharing arrangement has been agreed by both the parties with each of them contributing 50% of the cost incurred with an overall cap of $90 million for Aurobindo over the development period. Aurobindo would make an upfront payment of $25 million, on the effective date of the agreement.

Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.

The pharma major reported 7.95% rise in consolidated net profit to Rs 817.38 crore on a 6.93% increase in revenue from operations to Rs 7,646.21 crore in Q2 FY25 over Q2 FY24.

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