Acquisition for an upfront purchase price of $160 million in cash plus up to $140 million on achieving regulatory and sales-based milestones

• Acquired portfolio includes seven branded oncology injectable products which are currently being marketed. The acquisition also brings-in an experienced branded commercial
  infrastructure in the US
• The portfolio is expected to generate a revenue of around $100 million for the first 12 months after completion of the transaction for Aurobindo
• Transaction will be EPS accretive from first full year of ownership

Hyderabad, India, 17th January 2019: Aurobindo Pharma Limited (BSE: 524804 and NSE: AUROPHARMA) “Aurobindo”), announces the signing of a definitive agreement to acquire a portfolio of seven branded oncology injectable products from Spectrum pharmaceuticals Inc. The acquisition also brings-in an experienced branded commercial infrastructure in the US.

Acrotech Biopharma LLC (“Acrotech”), a wholly-owned subsidiary of Aurobindo Pharma USA Inc., which in turn a wholly-owned subsidiary of Aurobindo Pharma Limited, will be acquiring the portfolio on a debt free and cash free basis. This acquisition is in line with our strategy to commercialize innovative proprietary medications.

The acquisition will help Aurobindo Group to enter the branded oncology market with a range of products which are well recognized by the oncology community. Aurobindo Group will also acquire a well-established and experienced branded commercial infrastructure to continue commercializing these brands.

Commenting on the transaction, Dr. Ashish Anvekar, President of Acrotech, said: “We are excited to jump-start our mission of helping cancer patients across the globe by delivering clinically differentiated medications and leveraging strategic partnerships. We look forward to welcome an experienced team of employees from Spectrum who are essential to our mission.”

Commenting on the transaction, Mr. N. Govindarajan, Managing Director of Aurobindo, 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.”

Mr. Govindarajan added, “We look forward to deliver the benefits of this transaction to all our stakeholders including employees, patients, customers and healthcare providers across the US.”

The transaction is expected to close within 90 days  of signing following the completion of customary as well as regulatory conditions, including FTC clearance.

This announcement does not constitute a recommendation to shareholders or potential investors.

Leerink Partners LLC acted as financial advisor and Reed Smith LLP acted as legal counsel to Aurobindo.

Terms of Purchase and Sale Agreement:

Under the terms of the deal, Aurobindo will make $160 million up-front cash payment and up to $140 million in milestones as listed below:

Marqibo Milestones

• $30 million for FDA Product Approval for MARQIBO with label indicated for diffuse large B-cell lymphoma
• $10 million for FDA Product Approval for MARQIBO for any indication other than the B-Cell Lymphoma Indication, single vial or pediatric ALL
• $30 million for Net Sales of MARQIBO during any trailing twelve (12) month period during the Milestone Period are equal to or greater than $300,000,000
• $10 million for Net Sales of MARQIBO during any trailing twelve (12) month period during the Milestone Period are equal to or greater than $400,000,000

Khapzory Milestones

• $5 million for Net Sales of KHAPZORY during any trailing twelve (12) month period during the Milestone Period are equal to or greater than $50,000,000
• $5 million for Cumulative Net Sales of KHAPZORY are equal to or greater than $150,000,000 at any time during the Milestone Period
• $10 million for Cumulative Net Sales of KHAPZORY are equal to or greater than $200,000,000 at any time during the Milestone Period
• $15 million for Cumulative Net Sales of KHAPZORY are equal to or greater than $300,000,000 at any time during the Milestone Period
• $25 million for Cumulative Net Sales of KHAPZORY are equal to or greater than $400,000,000 at any time during the Milestone Period

The milestone period lasts for five years post the closing of the transaction. KHAPZORY milestones only payable in the event KHAPZORY is assigned a unique J-code.

About Acrotech

Acrotech Biopharma LLC, was formed as a global platform to commercialize innovative proprietary medications. The company aims to launch scientifically advanced products to address unmet needs and deliver value to patients as well as all healthcare stakeholders. Acrotech aspires to be a patient focused, research based organization that strives to launch treatments which are accessible to patients that need them.

About Aurobindo

Aurobindo Pharma Limited (www.aurobindo.com) (NSE: AUROPHARMA, BSE: 524804, Reuters: ARBN.NS, Bloomberg: ARBP:IN), is a world-leading marketer and manufacturer of generic pharmaceuticals and active pharmaceutical  ingredients. The company’s robust product portfolio is spread over major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Systemic Gastroenterologicals, Anti-Allergies, Anti-Diabetics and other therapeutic areas. The US and Europe are Aurobindo’s two most important markets accounting for over 70% of the company’s $ 2.6 billion sales. The company’s new product development activities are driven by an outstanding R&D organization. The company’s manufacturing facilities are approved by the world’s leading regulatory agencies including US FDA, UK MHRA, Japan PMDA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. Aurobindo is headquartered in Hyderabad, India.

For further information, please contact:
Investor Relations
Phone: +91 040-66725401 / 66725000
Mobile: +91 98486 67906
Email: ir@aurobindo.com

Disclaimer

This press release contains statements that may constitute “forward looking statements” including and without limitation, statements relating to product characteristics and uses, sales potential and target dates for product launch , implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations. The company undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances and will not be held liable for any use of this information.

Download Press Release & Terms of Agreement