Aurobindo Pharma reply to clarification sought by the exchange

The Exchange had sought clarification from Aurobindo Pharma Ltd with respect to news article appearing in ET Now on April 08, 2015 titled "Aurobindo pharma alleges fraud by owners of Natrol bought by the company from Plethico pharma, contracts worth $25mn. were fictitious."

Aurobindo Pharma Ltd replied stating

"a) Aurobindo Pharma Limited's 100% subsidiary Aurobindo Pharma USA emerged as the highest bidder for acquisition of Natrol Inc., USA under a process to be approved by United States Bankruptcy Court for the District of Delaware. This has been informed to the Stock Exchanges on 12th November 2014.

b) The above acquisition was completed by Aurobindo Pharma USA Inc., and includes manufacturing assets, personnel, commercial infrastructure etc., including nutraceutical brands in USA of Natrol along with an agreement to take certain liabilities with a bid of US Dollar 132.5 million. This has been informed to the Stock Exchanges on 5th December 2014.

c) Natrol LLC owned by Aurobindo had approached the Delaware Bankruptcy Court on April 6, 2015 in respect of acquisition of assets of Natrol, USA regarding certain discrepancies and non-performance of obligations by erstwhile owners, Plethico. Subsequently, discussions were held between Natrol LLC and Plethico group for resolution.

d) Based on the discussions a settlement agreement has been reached, wherein Plethico group would assign $23.3M in cash in milestone payments, certain global IP rights and other assets."