Eugia US Manufacturing LLC, a wholly-owned subsidiary of Aurobindo Pharma, has entered into an agreement with Empower Clinic Services New Jersey, LLC to divest its business assets in a transaction valued at more than $52 million.
Under an asset purchase agreement, the business assets are disposed of as a going concern, with related assets, liabilities and employees, as capabilities and operations are consolidated in other units of the company. Upon closing of the deal, it will enter into a contract manufacturing arrangement with the buyer, Aurobindo said in a statement on Monday. The pharmaceutical company's shares closed 4.53% lower at Rs 1,018.05 per piece on the Bahrain Stock Exchange.
Regarding this amount, Aurobindo said that $52 million will be received from the sale as well as $58 million in lease payments made to Eugia US Manufacturing LLC and/or its affiliates, over the 20-year lease term including extensions.