Aurobindo Pharma Acquires Additional 20% Stake in Chinese JV
Filing Summary
Aurobindo Pharma Ltd, through its wholly owned subsidiary Helix Healthcare B.V., has entered into an agreement to acquire an additional 20% stake in its joint venture, Luoxin Aurovitas Pharma (Chengdu) Co. Ltd, China. The acquisition involves a cash consideration of USD 5.125 million. Luoxin Aurovitas is a joint venture with Shandong Luoxin Pharmaceutical Group Stock Co., Ltd. This transaction, classified as a related party transaction, is expected to be completed within three months. The acquisition aims to expand manufacturing capabilities by adding two high-speed lines.
Aurobindo Pharma Ltd has announced that its wholly owned subsidiary, Helix Healthcare B.V., has entered into a binding agreement to acquire an additional 20% stake in Luoxin Aurovitas Pharma (Chengdu) Co. Ltd, China. This joint venture is currently held in a 30:70 ratio between Helix and Shandong Luoxin Pharmaceutical Group Stock Co., Ltd. The agreement was signed on December 22, 2025, and the acquisition is classified as a related party transaction.
The financial terms of the acquisition involve a cash consideration of USD 5.125 million for the 20% stake. The transaction is conducted at an arm’s length price based on third-party valuation. Luoxin Aurovitas reported a turnover of USD 2.34 million for the fiscal year 2024-25 and has a net worth of USD 15.29 million as of September 30, 2025. The acquisition agreement also includes a provision for Helix to acquire the remaining 50% stake by December 2029 at an agreed price of USD 18.86 million, subject to certain terms and conditions.
The operational scope of the acquisition includes expanding the manufacturing capabilities of Luoxin Aurovitas. The company plans to add two high-speed production lines to meet market demand and achieve economies of scale. Luoxin Aurovitas specializes in the production of inhalation products and was established as a joint venture on March 25, 2019. The company has shown growth in its turnover over the past three years, with figures of USD 0.48 million in 2023-24 and USD 0.16 million in 2022-23.
No governmental or regulatory approvals are required for this acquisition. The initial 20% stake acquisition is expected to be completed within the next three months. The transaction is structured as a cash consideration, with no share swap or other forms of consideration involved.
Shandong Luoxin Pharmaceutical Group Stock Co., Ltd. is a Chinese pharmaceutical company involved in the joint venture with Helix. The company focuses on the development and manufacturing of pharmaceutical products, contributing its expertise to the joint venture’s operations in China.
Aurobindo Pharma Ltd is a pharmaceutical company engaged in the manufacturing and marketing of generic pharmaceuticals and active pharmaceutical ingredients. The company focuses on expanding its global presence and enhancing its manufacturing capabilities to meet increasing market demands.