Aurobindo subsidiary boosts stake in Chinese joint venture to 50%

Aurobindo Pharma Limited announced its wholly-owned subsidiary, Helix Healthcare B.V., has agreed to acquire an additional 20% ownership in Luoxin Aurovitas Pharma (Chengdu) Co. Ltd. for $5.125 million. This transaction will increase Helix's stake in the joint venture, currently 30:70 with Shandong Luoxin Pharmaceutical Group Stock Co., Ltd., China, to 50%. The acquisition is considered a related-party transaction but conducted at arm's-length based on third-party valuation.

Luoxin Aurovitas, established on March 25, 2019, manufactures inhalation products in China and reported a turnover of $2.34 million for FY 2024-25, with a net worth of $15.29 million as of September 30, 2025. The strategic move aims to expand manufacturing capacity by adding two high-speed lines to achieve economies of scale and meet market demand.

The initial 20% stake acquisition is expected to be completed within the next three months. Helix also retains the right to acquire an additional 50% stake by December 2029 for $18.86 million, subject to certain terms and conditions. No governmental or regulatory approvals are required for this acquisition.