Lupin Limited has licensed two oncology drug programmes to a newly formed American company, Kaveri Therapeutics Inc., in a deal that grants the Indian pharmaceutical group an 82.2% equity stake in the new venture.
The transaction, disclosed on Tuesday, involves Lupin’s wholly-owned US subsidiary, Lupin Inc., transferring the rights to the cancer drug assets to the US-based entity.
2% ownership while potentially attracting external capital or strategic partners to fund the remaining development costs.
In exchange for the licences, Lupin received a $1.6 million stake in Kaveri Therapeutics, effectively spinning out the development of these specific programmes into a separate corporate structure.
The move represents a strategic shift for Lupin, which is increasingly looking to externalise the capital intensity and regulatory risk associated with late-stage oncology development.
By licensing the programmes to a dedicated US venture, Lupin retains majority control and upside potential through its 82.2% ownership while potentially attracting external capital or strategic partners to fund the remaining development costs.
This structure allows the company to maintain a foothold in the high-growth US oncology market without bearing the full burden of clinical trial expenses on its own balance sheet.