Mukul Agrawal’s portfolio pharma stock to keep under radar as company announces consolidation of business in Europe; Details inside
The stock gave multibagger returns of over 200 per cent in just 1 year and a whopping 400 per cent in 2 years.
Strides Pharma Global Pte Limited (SPG), a subsidiary of Strides Pharma Science Limited, is acquiring the remaining 30% stake in Strides Pharma International AG (Strides Switzerland) for approximately CHF 1.01 million. This acquisition aims to consolidate the European B2B business of Strides Group under Strides Switzerland and strengthen its position in the European market. Strides Switzerland is a pharmaceutical company focused on generic drugs, primarily operating in Switzerland and Germany. The acquisition is expected to be completed on October 25, 2024, and does not require any significant regulatory approvals.
The acquisition of Strides Switzerland is a strategic move for Strides Pharma Science Limited. By gaining full control over Strides Switzerland, the company can streamline operations, improve efficiency, and enhance its market presence in Europe. The target company, with its portfolio of high-quality generic products, is expected to contribute positively to the overall financial performance of Strides Pharma Science Limited. The acquisition is a related party transaction as SPG is acquiring shares from minority shareholders of Strides Switzerland. However, the promoters and promoter group of Strides Pharma Science Limited do not have any direct interest in the transaction.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
About the Company
Strides Pharma Science Ltd is a prominent global pharmaceutical company specializing in the development and manufacturing of high-quality generic medications. With a strong international presence, the company's products are distributed to over 100 countries. Strides has consistently pursued an inorganic growth strategy, enabling it to expand into new markets, diversify its product portfolio, and enhance its manufacturing capabilities.
Strides operates in two primary business verticals: Regulated Markets and Emerging Markets. The Regulated Markets segment encompasses the United States, Europe, Australia, and select emerging markets. The company has a strong foothold in these regions, with a focus on complex generic formulations. The Emerging Markets segment primarily comprises African operations and the Institutional Business, catering to donor-funded programs and low-income countries. Strides' WHO-prequalified manufacturing facility in Nairobi, Kenya, plays a crucial role in supplying affordable and essential medicines to these markets.
The company has a market cap of over Rs 13,000 crore. The stock gave multibagger returns of over 200 per cent in just 1 year and a whopping 400 per cent in 2 years. Investors should keep an eye on this pharma stock.
Disclaimer: The article is for informational purposes only and not investment advice.