Aurobindo Partners with Global Pharma to Develop Respiratory Products

November 25, 2024 – Aurobindo Pharma has entered into a significant Collaboration and License Agreement with a leading global pharmaceutical company to co-develop and commercialize products in the respiratory therapeutic area. The agreement, which spans an estimated duration of three to five years, marks Aurobindo’s first venture into the competitive yet lucrative respiratory segment in the United States.

Under the partnership's terms, both companies will jointly develop specific respiratory products, securing co-exclusive commercialization rights following regulatory approval. The products will initially be manufactured at the partner's facility, and both companies will market them. Aurobindo has also retained the option to undertake a technology transfer later, enabling future flexibility.

As part of the deal, Aurobindo will pay its partner an upfront payment of USD 25 million (₹210 crore). Once the agreement becomes effective, the development costs will be equally shared, with Aurobindo’s contribution capped at USD 90 million (₹760 crore), representing half of the total projected expenses. This collaboration positions Aurobindo alongside established players in the US respiratory market, such as Cipla, Lupin, and Glenmark, who have already gained traction in this space. However, the long-term nature of the agreement and certain undisclosed conditions may require further clarification.

The respiratory segment in the US offers significant potential despite its competitive landscape. With this collaboration, Aurobindo aims to leverage its partner’s expertise and infrastructure while sharing the development risks and costs, paving the way for its strategic entry into the respiratory domain.