Aurobindo Pharma today said Plethico will pay it $23.3 million to settle a dispute related to the acquisition of US-based Natrol.
Aurobindo Pharma Ltd’s 100 per cent subsidiary Aurobindo Pharma USA completed the acquisition of Natrol LLC from Plethico for $132.5 million on December 5, 2014.
On April 6, 2015, Natrol LLC had approached the Delaware Bankruptcy Court with certain discrepancies and non-performance of obligations by erstwhile owner Plethico with regard to the deal.
“Based on the discussions, a settlement agreement has been reached, wherein Plethico Group would assign $23.3 million in cash in milestone payments, certain global IP rights and other assets,” Aurobindo Pharma said in a BSE filing.
Aurobindo Pharma had emerged as the highest bidder for acquisition of Natrol Inc, USA.
The acquisition included manufacturing assets, personnel, commercial infrastructure, including nutraceutical brands in the US of Natrol along with an agreement to take certain liabilities.
Shares of Aurobindo Pharma were trading up 0.56 per cent at Rs 1,330.55 in afternoon trade on the BSE.