Aurobindo Pharma Raises Luoxin Aurovitas Stake to 50% With $5.12 Million Deal

23 Dec 2025 , 03:39 PM

Aurobindo Pharma Ltd informed stock exchanges that its wholly owned subsidiary Helix Healthcare B.V. has entered into a binding agreement to acquire an additional 20 percent stake in Luoxin Aurovitas Pharma Chengdu Co Ltd in China for $5.125 million.

Following the completion of the transaction, Helix Healthcare’s ownership in the joint venture will increase to 50 percent from the current 30 percent. Luoxin Aurovitas is presently structured as a 30 is to 70 joint venture between Helix Healthcare B.V. and Shandong Luoxin Pharmaceutical Group Stock Co Ltd.

The acquisition is expected to be completed within the next three months and is aimed at expanding manufacturing capacity at the facility to meet rising market demand. As part of the expansion plan, the company intends to add two high speed production lines, which is expected to support higher output and improve manufacturing efficiency.

Aurobindo Pharma said the increased stake will help achieve economies of scale in the manufacturing of inhalation products for the Chinese pharmaceutical market. The company clarified that the transaction qualifies as a related party transaction since it involves a joint venture entity, but added that it has been carried out at an arm’s length basis supported by a third party valuation.

Aurobindo also confirmed that no regulatory approvals are required to complete the stake acquisition. Under the terms of the agreement, Helix Healthcare has been granted the right to acquire the remaining 50 percent stake in Luoxin Aurovitas by December 2029 at a pre agreed price of $18.86 million, subject to specified conditions.

Luoxin Aurovitas Pharma operates in the pharmaceutical sector and was incorporated in March 2019 with a focus on manufacturing inhalation products for the China market.

The company reported a turnover of $2.34 million in FY25, marking a sharp increase from $0.48 million in FY24 and $0.16 million in FY23. Luoxin Aurovitas’ net worth stood at $15.29 million as of September 30, 2025, reflecting steady growth in its financial position.

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