Company also reaches settlement with Plethico over Natrol acquisition
Aurobindo Pharma has divested its stake in its Australian subsidiary to Eris Pharma for an undisclosed sum in order to focus on the US, European and emerging markets. The Indian company will, however, continue to manufacture and supply products to Eris Pharma for the Australian and New Zealand markets over the next few years.
'This divestment is in line with Aurobindo Pharma's strategy of focusing on the US, the EU and key emerging markets. This subsidiary was not contributing any profit to Aurobindo,' the company said in a filing to the stock exchange.
Aurobindo Pharma currently exports its products to more than 125 countries. The company has filings of 374 abbreviated new drug applications (ANDAs), of which 80-100 are pending.
In an unrelated development, Aurobindo Pharma said that Plethico would pay it US$23.3m to settle a dispute related to the acquisition of US-based Natrol. Aurobindo Pharma's wholly owned subsidiary Aurobindo Pharma USA completed the acquisition of Natrol from Plethico for $132.5m on 5 December 2014. On 6 April 2015, Natrol had approached the Delaware Bankruptcy Court with certain discrepancies and non performance of obligations by erstwhile owner Plethico with regard to the deal.
'Based on the discussions, a settlement agreement has been reached, wherein Plethico Group would assign $23.3m in cash in milestone payments, certain global Intellectual Property rights and other assets,' Aurobindo Pharma said.
The acquisition included manufacturing assets, personnel and commercial infrastructure, including Natrol's nutraceutical brands in the US, along with an agreement to assume certain liabilities.