Strides on shopping spree, also to divest Australian biz

Strides Pharma Science’s step-down subsidiary Strides Pharma Canada has entered into an arrangement to acquire 80 per cent stake in Pharmapar Inc., a Canada-based specialised generics front-end company. Canada is a new market for the company and one of top 10 global pharmaceutical markets.

The Canadian generic market is estimated at US$21 billion with a significant share of generics through retail pharmacies, according to IQVIA. This acquisition would cost Strides around CAD 4 million.

Also, its board of directors and its step-down subsidiary Strides Pharma Global Pte Limited, Singapore have approved to convert their 50:50 JVs with Vivimed to 100 per cent ownership.

In addition, to strengthen its position in the US market, the company is acquiring 100 per cent stake in Vensun Pharmaceuticals, Inc. This acquisition would help Strides to get access to additional 16 approved ANDAs and 12 files pending approvals. The base consideration for this acquisition is US$ 18 million.

Besides these acquisitions, the company has approved the sale of its Australian business including Arrow to the newly merged entity of Arrow-Apotex (Arrotex) after a review of Strides corporate strategy and the Australian market. Consequently, the company would enter into a 10-year preferred supply agreement with the merged entity, which would result in a potential annual EBITDA of AUD 15-20 million. The proceed from this divestment would be utilised to pare US$ 150-160 million of term debt of Strides which will strengthen its balance sheet. Also, it will infuse around US$ 90-100 million as growth capital for other operating markets of Strides.

Strides Pharma Science is a pharma company having interests in development and manufacture of IP-led niche finished dosage formulations. The company is among the world’s largest manufacturers of soft gelatin capsules.