The move is seen as Aurobindo's attempt to strengthen its commercial infrastructure, particularly in the generics market of Eastern Europe. At present, Aurobindo Pharma has presence in nine European countries.
The acquisition would give Aurobindo Pharma access to a portfolio of over 200 prescription drugs and 88 OTC products. Besides, the businesses have an additional pipeline of over 20 products, which are expected to be launched over the next two years, the drug maker said in a filing to BSE.
Aurobindo will acquire the commercial infrastructure, including experienced personnel, products, marketing authorisations and dossier licence rights in Poland, the Czech Republic, the Netherlands, Spain and Belgium.
"In the Netherlands, the acquisition will lead to Aurobindo becoming a leading OTC company by volume. In Spain, it will strengthen the companys position in the generics market. In Belgium, the acquisition will provide Aurobindo with an entry into the retail generics space, where it will become a top 5 player," the company said.
Aurobindo and Apotex will enter a transitional manufacturing and supply arrangement to support the ongoing growth plans of these businesses, it added.
Earlier this week, ET reported quoting sources that the drugmaker was holding final negotiations to acquire Mallinckrodts specialty generics business in the US—including its portfolio of opioid-based painkillers—for $850-900 million after talks resumed in May.