Aurobindo Pharma gains after American subsidiary inks product development pact with global pharma major

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.