Medicines Patent Pool and Aurobindo Pharma Limited have signed a deal to manufacture and distribute a generic version “nirmatrelvir”, Pfizer’s Covid-19 oral medication to India and 94other countries.
MPP had previously agreed to sub-license this Covid-19 medication to qualifying generic drugmakers under a voluntary licencing arrangement with Pfizer.
The Hyderabad-based pharma behemoth claims to have backward integration for nirmatrelvir and ritonavir compounds, as well as other antivirals, with in-house API production capabilities, giving it better supply chain management and cost savings.
The generic version of Pfizer’s drug will be produced at the company’s manufacturing facilities in India, which have been approved by global regulatory agencies such as the USFDA and UKMHRA, according to the company. It also claims to have sufficient capacity to meet global demand for the drug in 95 countries, including India.
Two other sources verified the information above, adding that the private equity funds were performing due diligence.
According to a fourth source, Kotak Mahindra Capital served as the sell side advisor on the sale, which is expected to value Aurobindo Pharma’s whole injectable business between $3.5 billion and $4.5 billion. Because the check was so large, this individual noted that the prospect of a consortium of bids could not be ruled out.
All four people mentioned above agreed to speak to Sources on the condition of anonymity.
Sources have issued reminders and will update this post whenever we receive replies to email enquiries made to Aurobindo Pharma, Barings PE Asia, and Kotak Mahindra Capital. KKR and Blackstone declined to comment.
According to a recent research report by Yes Securities, the firm’s performance in Q3 was harmed by a mix of price erosion in the US, lacklustre injectable sales, and higher input costs, although injectable sales in America are likely to improve sharply.
As of 12:22 p.m. on Thursday, Aurobindo Pharma Ltd.’s stock had risen 1.45% to Rs 646.65. (IST).
During the day, the stock traded at a high of Rs 654.95 and a low of Rs 637.4.
The stock has a return on equity (ROE) of 24.32 percent. Around 12:22 p.m., the counter’s traded volume was at 12:22 p.m., with a turnover of Rs 2.54 crore.
Aurobindo Pharma Ltd.’s stock has a 52-week high of Rs 1063.75 and a 52-week low of Rs 584.2, respectively.