Aurobindo Pharma Ltd said on Thursday it has agreed to buy seven branded oncology injectables from US-based Spectrum Pharmaceuticals Inc. for up to $300 million (Rs 2,134 crore).
The bet continues the drugmaker’s acquisition spree topped out in size by a September agreement to purchase Novartis AG unit Sandoz Inc.’s US dermatology and generic pills business for $1 billion -- the biggest overseas acquisition by an Indian pharmaceutical company.
The Hyderabad-based drugmaker will pay $160 million upfront in cash to Spectrum and the rest on achieving regulatory and sales milestones for the products, it said in a stock-market disclosure.
The acquisition will help it enter the branded oncology market, the company said.
The net sales of the acquired business were $116.2 million for 2017 and estimated sales for 2018 were $105 million, it said. The acquired business is expected to generate a revenue of around $100 million for the first 12 months after the completion of the transaction, it added.
The transaction, which is subject to regulatory conditions, is expected to close within 90 days.
For the deal, Leerink Partners LLC acted as a financial adviser and Reed Smith LLP offered legal counsel to Aurobindo.
Aurobindo's portfolio is spread over major therapeutic areas such as antibiotics, anti-retrovirals, systemic gastro-enterologicals, anti-allergies and anti-diabetics.
The US and Europe account for over 70% of Aurobindo’s $2.6 billion global sales yearly.
The company has been expanding in the US and Europe largely through acquisitions in several key markets.
In September, Aurobindo agreed to purchase Sandoz’s US dermatology and generic pills business for as much as $1 billion. The transaction trumped Lupin Ltd’s 2015 acquisition of US-based Gavis Pharmaceuticals and Novel Laboratories Inc. for $880 million (Rs 5,610 crore) and Intas Pharmaceuticals’ 2016 purchase of the assets and operations of Actavis Generics in the UK and Ireland from Teva Pharmaceutical Industries for $769 million.
In July last year, Aurobindo signed a pact to acquire the commercial operations and certain supporting infrastructure assets of Canadian pharmaceutical firm Apotex International Inc. in five European countries for 74 million euros ($86.5 million).