Goldman Sachs raises stake in Strides Arcolab

Global financial power house, Goldman Sachs Investments (Mauritius) I Limited has hiked its stake in Bangalore-based Strides Arcolab Limited.

The financial power house has informed exchanges that it has acquired 85,200 shares aggregating to 0.24 per cent of the share capital of Strides Arcolab on February 14, through a market purchase.

With the acquisition, Goldman Sachs Investments' total holding in the pharma company has touched 2,486,047 shares which makes up 7.11 per cent of the company's market capitalisation.

While announcing the company's annual results, Arun Kumar, vice chairman and group CEO of Strides Arcolab, had said that company's entry into the regulated markets was on target and its business there grew faster than the other segments.

In 2005, sales there were Rs 173.50 crore, representing 82 per cent growth over the previous year.

"The company expects the European market to add to the regulated markets' growth in the coming years by cross filing its US product pipeline," he added.

The company's business in the rest of the world has been driven by its strong presence in the AIDS, TB and malaria segments and the company has reduced its exposures in the markets where entry barriers were low but competition was high.

In 2005, the company commissioned an R&D centre in Bangalore called STAR (Strides Technology and Research). STAR has so far filed for seven patents.

The company recorded 26.84 per cent rise in profit profit at Rs 55.80 crore for year-ended December 31, 2005 against Rs 43.99 crore registered for 15 month period October 2003 to December 2004).

The company has recorded a rise of 16.76 per cent net sales at Rs 523.71 crore for the 12-month period January 2005 to December 2005) as against Rs 448.52 crore registered for the 15-month period (October 2003 to December 2004).