Aurobindo Pharma hives off its biosimilars business to wholy-owned subsidiary ‘CuraTeQ Biologics Private Limited’ for a cash consideration of ₹361.46 crore.
The Hyderabad-based drugmaker will transfer its biosimilars business, including related research and development and manufacturing facilities to its wholly-owned subsidiary. The slump sale is aimed at increasing the focus towards biological R&D and its commercialization, as well as to augment fund raising and strategic tie-ups in future through joint ventures, among others, Aurobindo Pharma said in an exchange filing. The company also aims to improve operational efficiency of its business and is looking for a potential listing opportunity for the wholly-owned subsidiary in future. Aurobindo Pharma has been ramping ups its biosimilar operations for the last few years, a segment where an increasing number of drugmakers are entering for promise of strong returns. The biosimilar business has a high gestation period and involves high risk, but also provides promise high returns as some of the biggest selling drugs globally are biologics.