Aurobindo Pharma's US faction has entered into a collaboration and licensing agreement with a global pharmaceutical company.
The agreement will focus on the development of respiratory therapeutics, with associated costs being shared equally between the partners.
The development period is predicted to span around three to five years, with Aurobindo's total spend in this portion of the deal capped at USD $90m.
Under the terms of the agreement, Aurobindo Pharma USA will receive an upfront payment of $25m once the deal is closed.
Together, Aurobindo Pharma and its global pharmaceutical partner will develop specific respiratory products, which will be co-exclusively commercialised.
Initially, the drug products will be manufactured at the partner's facility, though Aurobindo will be able to undertake a technology transfer in the future if they so please.
This partnership will assist Aurobindo in mitigating financial risks associated with therapeutic development, as well as reducing the time to market.
The deal will also diversify the company's existing product portfolio, which currently contains a range of therapeutics, including antibiotics and antivirals, as well as respiratory, cardiovascular and CNS-targeting drugs.