Aurobindo Pharma Expands China JV Stake with $5 Mn Deal

The company has indicated that the move is aimed at expanding manufacturing capacity and achieving economies of scale.

Aurobindo Pharma, the Hyderabad-based pharma major, through its wholly owned subsidiary Helix Healthcare B.V., has agreed to acquire an additional 20% equity from Chinese partner Shandong Luoxin Pharmaceutical Group for $5.12 million, a transaction expected to close within the next three months.

With this acquisition, Helix Healthcare’s holding in the joint venture will rise from 30% to 50%, giving Aurobindo Pharma equal ownership and greater operational influence.

The agreement also grants Helix the right to acquire the remaining 50% stake by December 2029 for a pre-agreed consideration of $18.86 million, subject to specific terms and conditions.

The company has indicated that the move is aimed at expanding manufacturing capacity and achieving economies of scale.

“The move is aimed at expanding the manufacturing to economies of scale by adding two high-speed lines,” a company statement said.

Luoxin Aurovitas was incorporated on March 25, 2019, as a 30:70 joint venture between Helix Healthcare and Shandong Luoxin Pharmaceutical Group to manufacture inhalation products for the Chinese market.

The facility plays a strategic role in Aurobindo Pharma’s global respiratory portfolio, particularly as inhalation therapies continue to gain relevance in the treatment of chronic respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD).

As of now, the joint venture has a reported net worth of around $15.29 million.

The decision to increase ownership aligns with Aurobindo Pharma’s broader pharma strategy of deepening its footprint in complex generics and specialty dosage forms.

By expanding capacity in China, Aurobindo aims to better serve local demand while leveraging cost efficiencies and supply chain advantages in one of the world’s largest pharma markets.

For Aurobindo Pharma, the joint venture structure has provided market access and regulatory familiarity, while the gradual increase in stake reflects a long-term commitment.

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