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Aurobindo Pharma is stepping up its China play. Its wholly-owned subsidiary, Helix Healthcare B.V., has signed an agreement to buy an additional 20% stake in Luoxin Aurovitas Pharma for $5.12 million.
What’s driving the move: Aurobindo is looking to deepen its presence in the Chinese pharmaceutical market while scaling up manufacturing.
Luoxin Aurovitas, incorporated in March 2019, focuses on making inhalation products specifically for China, a segment seeing steady demand growth.
The deal also gives Helix a clear path to full control. Under the agreement, it has the option to acquire the remaining 50% stake by December 2029 at a pre-agreed price of $18.86 million, offering long-term visibility and strategic flexibility.
Quick background: Aurobindo already operates in China through Luoxin Aurovitas, a joint venture with Luoxin Pharmaceuticals. The JV manufactures and sells generic medicines in China, one of the world’s largest, and toughest, pharma markets to crack.
The acquisition is expected to close within the next three months. Once completed, Aurobindo plans to expand capacity by adding two high-speed production lines, positioning the business to meet rising demand and strengthen its manufacturing footprint in China.
