Aurobindo/Sandoz deal falls through, biosimilars business transferred to subsidiary

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Aurobindo/Sandoz deal falls through, biosimilars business transferred to subsidiary

Home/Pharma News | Posted 19/06/2020 0 Post your comment

It has been announced that Aurobindo Pharma’s planned deal to take over the US generic oral solids and dermatology businesses of Sandoz has fallen through. More recently, the company has transferred its biosimilars business to its wholly owned subsidiary CuraTeQ Biologics.

Aurobindo Pharma is a generics and active pharmaceutical ingredient (API) manufacturer based in India. The company has recently had three of its generics approved by the US Food and Drug Administration (FDA) [1].

The company had also signed a deal with the generics unit of Novartis, Sandoz, to acquire its US generic oral solids and dermatology businesses, including three manufacturing units.

The deal was agreed in September 2018 for a total of US$1 billion, which would have been the largest overseas acquisition to be made by an Indian drug manufacturer. An upfront payment of US$900 million was offered by Aurobindo, followed by performance-based pay outs of the remaining US$100 million.

However, it was announced in April 2020 that the deal had fallen through due to a delay in approval from the US Federal Trade Commission.

A statement from Aurobindo said: ‘This decision was taken as approval from the US Federal Trade Commission for the transaction was not obtained within anticipated timelines’.

At a recent board meeting, held on 3 June 2020, it was announced that Aurobindo had approved the transfer of its biosimilars business (including related R & D and manufacturing sites) to its subsidiary, CuraTeQ Biologics, a Swiss company based in Lucerne. The transfer will increase the company’s focus on biological products.

The company faces major competition from Biocon, a large biosimilars manufacturer headquartered in Bangalore, India. Biocon have recently had three of their manufacturing sites approved by FDA [2].

Aurobindo and Lannett expand their generics portfolios

References
1. GaBI Online - Generics and Biosimilars Initiative. Aurobindo Pharma receives FDA approval for three generics [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2020 Jun 19]. Available from: www.gabionline.net/Generics/News/Aurobindo-Pharma-receives-FDA-approval-for-three-generics
2. GaBI Online - Generics and Biosimilars Initiative. US FDA clears Biocon manufacturing sites in Malaysia and India [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2020 Jun 19]. Available from: www.gabionline.net/Biosimilars/General/US-FDA-clears-Biocon-manufacturing-sites-in-Malaysia-and-India

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Source: Aurobindo Pharma