Aurobindo Pharma’s wholly owned subsidiary Helix Healthcare B.V. has signed a binding agreement to acquire an additional 20% stake in its Chinese joint venture, Luoxin Aurovitas Pharma (Chengdu) Co. Ltd., for around Rs 45 crore (USD 5.125 million).
This will raise Helix’s holding in the inhalation-focused JV from 30% to 50%, with a further option to eventually take full control by 2029.
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Deal highlights
- Helix Healthcare B.V., a 100% subsidiary of Aurobindo Pharma, will purchase a 20% additional ownership in Luoxin Aurovitas from its JV partner Shandong Luoxin Pharmaceutical Group Stock Co. Ltd. for USD 5.125 million (about Rs 45 crore).
- Post-transaction, the shareholding in Luoxin Aurovitas will become 50:50 between Helix and Shandong Luoxin, from the current 30:70 structure.
- The acquisition is expected to be completed within the next three months and is structured as a related-party transaction executed at arm’s length, supported by an independent third‑party valuation.
Strategic rationale and expansion plan
- Luoxin Aurovitas was incorporated on March 25, 2019, to manufacture inhalation and nebuliser products in China, with a focus on serving the Chinese market and select regulated markets.
- The fresh investment is aimed at expanding manufacturing to achieve economies of scale by adding two high-speed production lines at the Chengdu facility, enabling higher output and better cost efficiencies.
- Aurobindo expects the expanded capacity to support rising demand for inhalation therapies and strengthen its respiratory pipeline positioning in a large and rapidly growing market like China.
Financial profile of Luoxin Aurovitas
- Luoxin Aurovitas reported a turnover of about USD 2.34 million in FY 2024–25, reflecting a sharp ramp-up from USD 0.48 million in FY 2023–24 and USD 0.16 million in FY 2022–23.
- As of September 30, 2025, the JV had a net worth of approximately USD 15.29 million, demonstrating a relatively strong balance sheet for a young inhalation-focused manufacturing entity.
- The additional investment allows Helix/Aurobindo to benefit more directly from future revenue scaling and potential margin improvement as utilization improves on the back of the new lines.
Future option for majority stake
- Under the binding agreement, Helix Healthcare has secured the right to acquire the remaining 50% stake in Luoxin Aurovitas by December 2029 at a pre-agreed consideration of USD 18.86 million, subject to specified terms and conditions.
- This call option structure gives Aurobindo strategic flexibility: it can evaluate performance, regulatory traction, and market dynamics over the next few years before deciding on full ownership of the China inhalation platform.
Aurobindo’s broader growth and Telangana context
- Aurobindo Pharma is an integrated global pharmaceutical company headquartered in Hyderabad, marketing generic and specialty medicines as well as APIs across more than 150 countries, supported by around 31 regulatory‑approved manufacturing and packaging facilities worldwide.
- The Luoxin Aurovitas stake hike comes alongside Aurobindo’s large proposed investments in Telangana, where the company has signed multi‑crore agreements to expand capacities in complex generics, injectables, biosimilars, and biologics, as part of more than Rs 1 lakh crore of life‑sciences MOUs announced by the state.
This development positions Aurobindo Pharma to deepen its presence in high‑value inhalation therapies, tap Chinese demand more effectively, and potentially convert Luoxin Aurovitas into a fully controlled manufacturing hub by the end of the decade.