Aurobindo Pharma’s wholly owned subsidiary, Eugia US Manufacturing LLC, has finalized an agreement with Empower Clinic Services New Jersey, LLC to sell its business assets in a transaction valued at over $52 million. The asset purchase agreement encompasses the transfer of business assets, including related liabilities and employees, as part of ongoing efforts to enhance capacities and operations within other units of the company. Upon completion of the transaction, Aurobindo Pharma will establish contract manufacturing arrangements with the buyer. The company disclosed these details in a filing on Monday. Following this announcement, Aurobindo Pharma’s shares experienced a 4.53% decline, closing at ₹1,018.05 per share on the BSE.
Regarding the financial terms, Aurobindo Pharma mentioned that it will receive $52 million from the disposal, in addition to $58 million in lease payments to be made to Eugia US Manufacturing LLC and/or its affiliates over a 20-year lease term, including extensions.