Aurobindo Pharma arm in U.S. to dispose business assets for $52 million 

Eugia US Manufacturing LLC, a wholly owned step-down subsidiary of Aurobindo Pharma, has entered into agreement with Empower Clinic Services New Jersey, LLC to dispose its business assets in a more than $52-million deal.

Under the asset purchase agreement, it is disposing of business assets as a going concern, with related assets and liabilities and employees, since capacities and operations are being ramped up in other units of the company. Upon closing, of the transaction, it will enter into contract manufacturing arrangements with the buyer, Aurobindo said in a filing on Monday. The drugmaker’s shares closed 4.53% lower to ₹1,018.05 apiece on the BSE.

On the consideration, Aurobindo said $52 million is to be received from the disposal plus $58 million in lease payments made to Eugia US Manufacturing LLC and/or its affiliates, over the 20 years lease term including extensions.