Aurobindo to hike stake in Chinese JV Luoxin Aurovitas to 50% for $5 m

HYDERABAD: Aurobindo Pharma’s wholly owned Dutch subsidiary, Helix Healthcare BV, is acquiring an additional 20% stake in Luoxin Aurovitas Pharma (Chengdu) of China, a 30:70 joint venture between Helix and Chinese player Shandong Luoxin, for a consideration of a little over $5 million.

This will take the company's stake in the Chinese JV to 50% in the first quarter of 2026. The strategic stake buy is part of the company’s plan to acquire a 100% stake in the joint venture by buying out the remaining 50% stake by December 2029 at an agreed price of $18.9 million, Aurobindo said in a regulatory filing.Aurobindo said its arm Helix has entered into a binding agreement with Shandong Luoxin for the acquisition, with the first tranche of 20% to be acquired within the next three months in the joint venture company that manufactures inhalation products. “The object of acquisition is to expand the manufacturing to economies of scale by adding two high-speed lines and cater to market demand,” it said.The Hyderabad-based company said it does not require any govt or regulatory approvals for the proposed acquisition, which is subject to certain terms and conditions.