Aurobindo Pharma, through a U.S. subsidiary, has entered into a collaboration and licence agreement with a global pharma major for development of specific products across respiratory therapeutic area and their commercialisation.
The financials include an upfront payment of $25 million on the effective date of the agreement. The two entities have agreed to equally share the developmental costs with an overall cap of $90 million for Aurobindo, the Hyderabad-based generic drugmaker said in a filing on Saturday.
Citing confidentiality clause in the agreement, it, however, did not disclose the pharma major’s name.
The product development is estimated to span 3-5 years. The two entities will co-exclusively commercialise the products to be manufactured at the partner’s facility. The partner will have global manufacturing rights for the codeveloped and commercialised products. Aurobindo has an option to technology transfer at a future date.
On rationale and benefits of the agreement, Aurobindo listed sharing of risks associated with product development as well as the cost of development; reduction in the gestational period for developing the product from scratch; and strengthening/ diversification of its existing product portfolio.
Published – November 23, 2024 07:05 pm IST