Aurobindo to buy seven oncology injectables from Spectrum Pharma

Aurobindo Pharma Ltd. plans to acquire a portfolio of seven branded oncology injectable products from Spectrum Pharmaceuticals Inc. The acquisition involves an upfront payment of USD 160 million in cash, plus up to USD 140 million on achieving regulatory and sales-based milestones. The acquisition also gives Aurobindo a branded commercial infrastructure in the US. Acrotech Biopharma LLC, a wholly-owned subsidiary of Aurobindo Pharma, will acquire the assets on a debt free and cash free basis. This acquisition is in line with the company’s strategy to commercialize innovative proprietary medications. The acquisition will enable Aurobindo to enter the branded oncology market with a range of products that 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. Spectrum, as part of its strategic shift to focus on novel oncology drug development and commercialization of its two late-stage pipeline products, carved out its commercial business inclusive of seven marketed oncology injectable products, intellectual property, and commercial infrastructure for sale. The revenue of the acquired business was around USD 116.2 million in the year ended December 2017 and estimated revenues in 2018 would be USD 105 million. The acquisition creates an ideal launch pad for Acrotech, and establishes their presence in the branded market, which is in line with the strategy to grow and diversify business in the US.