Aurobindo Pharma, a pharmaceutical company, has terminated its licensing agreement with Hilleman Laboratories Singapore Pte Ltd for the development, manufacturing, and commercialization of a pediatric pentavalent vaccine candidate. The agreement was signed in September 2023 and was set to expire in 2025. As Auro Vaccines, the subsidiary responsible for the vaccine development, is not a material part of the company, Aurobindo Pharma expects the termination to have no significant impact on its financials or subsidiaries.
The agreement required Auro Vaccines to make milestone payments to Hilleman Laboratories upon achieving specific development and clinical study outcomes, as well as pay royalties to the Singapore-based company once the vaccine candidate was commercialized. Despite the termination, Aurobindo Pharma is not expected to experience any significant impact, and the company will make any necessary disclosures if the situation changes in the future.
The termination is viewed as a “non-material event” by Aurobindo Pharma, which suggests that the company does not expect to incur any substantial financial losses or liabilities as a result. This decision may indicate that the company is re-evaluating its priorities and focusing on more promising opportunities. As the deal was still in its early stages, the termination may not have significant implications for the pharmaceutical industry or the development of pediatric vaccines.