India’s Aurobindo acquires cancer specialist Spectrum’s marketed portfolio for US

By PharmaCompass

2019-01-24

Impressions: 106 Article

Indian drug major Aurobindo Pharma announced last week it is acquiring US-based Spectrum Pharmaceuticals in a US$ 300 million deal, including an upfront cash payment of US$ 160 million. Spectrum Pharma is a rare disease and cancer specialist. And there has been buzz around the potential sale of the company since June 2018. However, Spectrum is only selling its FDA-approved products.

The company is selling its entire portfolio of seven marketed products to Acrotech Biopharma, a wholly-owned subsidiary of Aurobindo.

About 40 percent of Spectrum’s workforce (around 90 employees) are being cast aside, with most of them slated to move to New Jersey-based Acrotech. According to Spectrum president and CEO, Joe Turgeon, the selloff is a strategic shift “to ensure laser-focus” on novel oncology drugs, and the cash is placing Spectrum “in a solid position to evaluate additional growth opportunities.”

In a regulatory filing, Aurobindo Pharma said Acrotech will be acquiring the product portfolio on a debt-free and cash-free basis. This acquisition will help Aurobindo enter the branded oncology market in the US.

For Aurobindo, the product portfolio is expected to generate revenue of around US$ 100 million for the first 12 months after completion of the transaction.

The acquisition “creates an ideal launch pad for Acrotech, and establishes our presence in the branded market, which is in line with our strategy to grow and diversify our business in the US," Aurobindo managing director N Govindarajan said.

“The transaction is expected to close within 90 days of signing following the completion of customary as well as regulatory conditions, including FTC clearance,” he added.

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