Transaction to raise ownership to 50% Aurobindo Pharma, through its wholly-owned Dutch subsidiary Helix Healthcare B.V., has reached an agreement to acquire an additional 20% stake in its joint venture, Luoxin Aurovitas Pharma (Chengdu). The transaction is valued at approximately $5.12 million in cash. Upon completion within the next three months, Helix’s ownership in the venture will increase from 30% to 50%, strengthening the group’s strategic footprint in the Chinese pharmaceutical manufacturing landscape.
Scaling up production of specialized inhalation products Established in 2019, Luoxin Aurovitas focuses primarily on the manufacturing of inhalation products. This capital increase is aimed at adding two high-speed production lines to achieve greater economies of scale and meet the rising demand for respiratory therapies. Financial data reflects significant growth for the entity, with turnover in fiscal year 2024-2025 reaching $2.34 million, nearly a five-fold increase compared to the previous year.
Roadmap for full acquisition by 2029 The new agreement also paves the way for Aurobindo to take full control of the entity in the future. Specifically, Helix Healthcare has secured the right to acquire the remaining 50% stake from its partner, Shandong Luoxin, by December 2029 at a pre-agreed price of $18.86 million. The transaction currently requires no regulatory approvals and was conducted on an arm’s length basis, supported by a third-party valuation.