Aurobindo Pharma's wholly-owned step-down subsidiary, Eugia US Manufacturing LLC, has entered into an asset purchase agreement with Empower Clinic Services New Jersey, LLC, to divest its business assets as a going concern for USD 52 million.

The agreement encompasses Eugia's related assets, liabilities, and employees, as the company strategically focuses on enhancing capacities and operations in other units. Following the closure of the deal, Eugia will engage in contract manufacturing arrangements with the buyer.

The transaction involves a cash consideration of USD 52 million from the asset disposal, with an additional USD 58 million allocated for lease payments to Eugia US Manufacturing LLC and/or its affiliates over a 20-year lease term, including extensions.

Anticipated to conclude within 90 days from the agreement date, the transaction is contingent upon meeting closing conditions specified in the definitive agreement, including financial closure by the buyer.