AstraZeneca, Aurobindo near finasteride supply deal

AstraZeneca Laboratories AB, the London-headquartered pharma giant, is set to ink a deal with Aurobindo Pharma for supply of generic finasteride, which is used in the treatment of prostate issues and male pattern baldness.

Officials of Aurobindo refused to comment on the issue, but two sources familiar with the development said the deal is more or less sealed.

AstraZeneca has already completed a product audit for finesteride at one of the manufacturing facilities of Aurobindo.

AstraZeneca officials could not be reached for comment.

The UK firm may look at supply of other products too over a period of time, said one person. “Typically, a stake sale would involve the buyer conducting a facility audit. In this case, it was just a product audit so it’s more about a supply contract,” he said. 

Once a formal agreement is inked, Aurobindo is also expected to receive an upfront fee may be up to $100 million for assured product supply.

“Like in Pfizer Inc’s case, the new deal also would mean adhering to the schedules. Supplying the product as per AstraZeneca’s specifications and the schedules provided by the company are very important. Aurobindo has established that by having a successful relationship with Pfizer,” the source said.

Aurobindo has a multi-year, multi-product contract deal with Pfizer that is estimated to be reel in significant revenues.