Aurobindo Pharma Strengthens Stake in Chinese Joint Venture

Aurobindo Pharma is acquiring an additional 20% stake in its China-based joint venture for USD 5.12 million. The Hyderabad-based firm plans to initially secure the stake within three months and has the right to acquire a further 50% by December 2029 for USD 18.86 million.

Aurobindo Pharma announced on Tuesday its intention to acquire an additional 20% stake in its China-based joint venture for USD 5.12 million. This investment marks a significant move in the pharmaceutical company's international expansion efforts.

The acquisition will be carried out by Helix Healthcare BV, a subsidiary wholly owned by Aurobindo Pharma. Helix Healthcare BV has signed a binding agreement with Shandong Luoxin Pharmaceutical Group Stock Co, its partner in the joint venture, Luoxin Aurovitas Pharma, to facilitate this transaction.

Luoxin Aurovitas Pharma currently operates as a 30:70 joint venture between Helix and Shandong Luoxin. Aurobindo Pharma aims to complete the initial stake acquisition within three months, with the option to buy the remaining 50% stake by December 2029 at a price of USD 18.86 million, subject to terms and conditions.

(With inputs from agencies.)