Aurobindo Pharma arm to acquire biz of Profectus BioSciences
By Sreenivasa Rao Dasari Published on 29 Nov 2019 5:15 AM GMT
Hyderabad: Auro Vaccines LLC, a subsidiary of Aurobindo Pharma USA Inc., has acquired certain business assets from Profectus BioSciences Inc., USA, a clinical-stage vaccine development company. The acquisition enables Auro Vaccines to develop new vaccines and make them as per US FDA standards. Both firms have agreed in an upfront cash consideration of $11.29 million with potential earn-outs on achieving certain milestones. The company expects the acquisition process to be completed by June 2020.
Auro Vaccines is a step-down subsidiary of Aurobindo Pharma Ltd as Aurobindo Pharma USA, in turn, is a 100 per cent subsidiary of the Hyderabad-based pharma major.
The acquisition provides access to Aurobindo to have proprietary and innovative technology platforms for prophylactic use and therapeutic use along with global R&D centre. The acquisition will lead to the enhancement of research capabilities and expertise in developing newer vaccines from basic discovery research into FDA-approved product.
However, the closure of the deal is subject to government approvals and third-party consents. Aurobindo Pharma shares were last trading in BSE at Rs 450 as compared to the previous close of Rs 453.35. As many as 138,781 shares traded in over 2,292 transactions.
Aurobindo Pharma shares registered a net loss of Rs 3.15 or 0.69 per cent and closed at Rs 450.20 on BSE. The net turnover in the scrip was Rs 6.26 crore. Aurobindo Pharma stock suffered the worst downfall since 2011 as shares plummeted by 40 per cent so far in 2019. The pharma company was facing a few regulatory problems in the US, which is a significant market for it.
US FDA inspected plants of Aurobindo Pharma and issued adverse observations that affected the production line. The regulatory issues may also affect prospects of pending applications for the drug maker, said an analyst.
Aurobindo Pharma, in its earnings call after announcing the financial results for the September quarter, said that it completed the remedial work as per the US FDA directive.
