Aurobindo Pharma added 1.44% to Rs 1241.30 after the company's wholly owned subsidiary Aurobindo Pharma USA Inc entered into a collaboration and license agreement with a global pharma major.
The agreement is for development of specific products across respiratory therapeutic area and their commercialisation.
The agreement is for an initial estimated development duration of three- five years. Both the parties will collaborate with respect to the development of specific products across respiratory therapeutic area.
Both the parties will co-exclusively commercialize the product. The products, once commercialized, will be manufactured at partners facility and will be marketed by both the parties. Aurobindo has an option to technology transfer at a future date.
A cost-sharing arrangement has been agreed by both the parties with each of them contributing 50% of the cost incurred with an overall cap of $90 million for Aurobindo over the development period. Aurobindo would make an upfront payment of $25 million, on the effective date of the agreement.
Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.
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The pharma major reported 7.95% rise in consolidated net profit to Rs 817.38 crore on a 6.93% increase in revenue from operations to Rs 7,646.21 crore in Q2 FY25 over Q2 FY24.
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