Strides Pharma stock climbs 3.5 per cent on merger of Arrow and Apotex

Strides Pharma’s stock jumped 3.5 per cent during Friday’s opening trade as the decision to merge Arrow and Apotex did not face opposition by the Australian Competition and Consumer Commission (ACCC). 

The ACCC decided not to challenge the merger after establishing that the transaction would not substantially reduce competition in any market. However, the transaction rests on the conclusion of definitive agreements, approval of the BODs and the approval from the Australian Foreign Investment Review Board, the company reported in an exchange filing. 

Strides Pharma Science Ltd. is engaged in the development and manufacturing of IP-led niche finished dosage formulations. It also ranks amongst the world’s largest manufacturers of soft gelatin capsules. 

Arrow Pharmaceuticals Pvt. Ltd. is the Australian operating business of Strides Pharma Science Limited. It markets over 180 generic pharmaceutical products and OTC drugs to pharmacies and hospitals. 

Apotex Australia is a leading supplier of generic pharmaceuticals, OTC products and vitamins to the Australian pharmacy market. It operates in more than 45 countries and has a significant presence in the US, Mexico and India. 

The merger of Arrow and Apotex will prove beneficial to the pharmacies in Australia as it will facilitate the supply of about half the market for generic prescription pharmaceuticals.   

On Friday, the stock of Strides Pharma opened at Rs. 494.45 and hit a high of Rs 510 per share. At 11:35 am, the stock was trading at Rs. 504.40, up 2.93 per cent.