Eugia US Manufacturing LLC, USA, a wholly-owned step-down subsidiary of Aurobindo Pharma Ltd. has signed an asset purchase agreement with Empower Clinic Services New Jersey, LLC to dispose of its business assets as a going concern for $52 million.

The deal will also involve Eugia's related assets, liabilities and employees since capacities and operations are being ramped up in other units of the company. Once the deal is closed, it will enter into contract manufacturing arrangements with the buyer.

Cash of US$ 52 million to be received from the disposal, plus US$ 58 million in lease payments made to Eugia US Manufacturing LLC and/or its affiliates, over the 20 years lease term including extensions.

The transaction is expected to close within 90 days from the date of definitive agreement subject to fulfilment of closing conditions referenced in the definitive agreement including financial closure by the buyer.