Aurobindo Pharma Limited has disclosed that its wholly owned subsidiary CuraTeQ Biologics Private Limited has mutually terminated a licensing agreement with BioFactura Inc, USA. The agreement, which related to the development and commercialization of BFI-751, a proposed ustekinumab biosimilar product, was mutually terminated due to strategic portfolio prioritisation.

Agreement Details and Timeline

The licensing agreement was originally executed on July 7, 2023, and involved the commercialization of BFI-751 as a biosimilar to Stelara (Ustekinumab). The partnership structure included specific financial and operational arrangements between the two companies.

Commercial Structure

The original agreement established a comprehensive commercial framework with defined roles for both parties. BioFactura was set to receive license fees distributed across various milestones leading to commercialization in regulated markets, while CuraTeQ secured global manufacturing rights for the biosimilar product.

Key commercial terms included:

• Profit-sharing arrangement between the parties
• Global manufacturing rights for CuraTeQ
• Milestone-based license fee structure for BioFactura

Strategic Decision and Impact

CuraTeQ Biologics cited strategic portfolio prioritisation as the primary reason for the mutual termination. The company emphasized that this decision aligns with its broader strategic objectives in the biosimilars segment. According to the disclosure, the termination is not expected to have a material impact on the company's overall biosimilars strategy.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement confirmed that the transaction did not involve any related party relationships, with both companies operating independently without any shareholding arrangements or promoter group connections.

The termination represents a strategic realignment for CuraTeQ Biologics as it continues to focus on its core biosimilar development priorities while maintaining its broader market position in the pharmaceutical sector.

Aurobindo Pharma has announced its plan to purchase an additional 20% stake in its Chinese joint venture, Luoxin Aurovitas Pharma, for USD 5.125 million. This strategic move is designed to strengthen the pharmaceutical company's presence in the Chinese market while expanding its manufacturing capabilities.

Joint Venture Details

The acquisition involves Luoxin Aurovitas Pharma, a joint venture established in China with Shandong Luoxin as the partner company. The following table outlines the key parameters of this strategic investment:

Strategic Benefits

The purchase of this additional stake is expected to significantly boost Aurobindo Pharma's manufacturing capacity in the Chinese pharmaceutical market. This expansion aligns with the company's broader strategy to strengthen its international operations and enhance its production capabilities in key Asian markets.

Transaction Timeline

The deal is expected to close within a three-month timeframe, indicating a relatively swift execution of this strategic acquisition. This timeline suggests that preliminary negotiations and due diligence processes have likely been completed, with the companies now moving toward final documentation and regulatory approvals.

Market Implications

This investment represents Aurobindo Pharma's continued commitment to expanding its global footprint, particularly in the Asian pharmaceutical manufacturing sector. The partnership with Shandong Luoxin provides the company with local expertise and market knowledge essential for successful operations in China's complex pharmaceutical landscape.