Aurobindo Pharma shares are in focus following recent strategic developments involving its subsidiaries. The pharmaceutical company's wholly owned subsidiary CuraTeQ Biologics Private Limited has mutually agreed to terminate its licence agreement with US-based BioFactura Inc for the commercialisation of BFI-751, a proposed biosimilar of ustekinumab (Stelara). The termination, effective December 27, 2025, follows a strategic review and aligns with CuraTeQ's portfolio prioritisation efforts.

Agreement Termination Details

The original licence agreement was executed in July 2023 and envisaged the commercialisation of the biosimilar in regulated markets. The partnership structure included specific financial arrangements where BioFactura would receive licence fees and milestone payments, while CuraTeQ held global manufacturing rights under a profit-sharing structure.

Chinese Joint Venture Expansion

In a separate development, Aurobindo Pharma's wholly-owned subsidiary Helix Healthcare BV has entered a binding agreement to acquire an additional 20% stake in Luoxin Aurovitas Pharma (Chengdu) Co. Ltd., China for $5.13 million. The transaction will raise Helix's ownership in the joint venture to 50%.

Currently, Luoxin Aurovitas operates as a 30:70 joint venture between Helix and Shangdong Luoxin Pharmaceutical Group Stock Co. Ltd. The acquisition is expected to be completed within the next three months.

Strategic Impact and Market Performance

Aurobindo Pharma has clarified that the BioFactura agreement termination was reached by mutual consent and is not expected to have any material impact on its overall biosimilars strategy. The decision represents part of CuraTeQ's ongoing strategic portfolio prioritisation efforts following a comprehensive review, reflecting the company's focus on optimising its biosimilars pipeline.

Shares of Aurobindo Pharma ended the previous session 0.30% lower at ₹1,208.30 apiece. The stock has declined 10.70% during the current year, reflecting broader market dynamics in the pharmaceutical sector.

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.