Aurobindo Pharma inks product development deal with global pharma company

Aurobindo's wholly owned subsidiary, Aurobindo Pharma USA, has entered into a collaboration and license agreement with an unnamed global pharma company for the development and commercialization of specific products across the respiratory therapeutic category, per a Business Standard report.

The agreement is for an initial estimated development duration of three to five years. Both parties will collaborate with respect to the development of specific products across the respiratory therapeutic category and they will co-exclusively commercialize the product. The products, once commercialized, will be manufactured at the partners’ facility and will be marketed by both parties. Aurobindo has an option for technology transfer at a future date.

A cost-sharing arrangement has been agreed by both parties with each of them contributing 50% of the cost incurred with an overall cap of $90 million for Aurobindo over the development period. Aurobindo would make an upfront payment of $25 million, on the effective date of the agreement, the report said.

[Read more: Aurobindo obtains FDA OK for generic Keflet]

Aurobindo Pharma is principally engaged in manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services.