Strides may go for buyouts in Europe

Strides Arcolab, the Bangalore-based generic exports major, is looking at European generic companies for acquisition. This follows its expansion of manufacturing base in Europe, where it has huge supply contracts.

Sources close to the the development said the company has identified a target and would make formal announcement in a week or so. However, Managing Director Arun Kumar denied this.

He said: "We are looking at various opportunities including those ones in the European generic markets. But we are in no stage of acquisition at the moment."

According to industry analysts, the Euroepan manufacturing base would help Strides for not only supplying to the global clients but also facilitate registrations in the regulated markets. The Rs 500 crore company has received supply contracts with 10 of the world's top 50 pharma majors.

Strides had recently broadened its product supply arrangement with Australia's Mayne Group to Europe . The Australian supply pact for six anti-infective products had covered only the US market earlier.

According to the extended supply agreement, Strides supplies six injectable, non-cytotoxic products which Mayne Pharma Business Unit markets and distributes in the US and Europe. These products have an annual sales of over $1.1 billion.

The Mayne Group, listed on the Australian stock exchanges, is into production of of injectable and oral pharmaceuticals for distribution in over 50 countries.

Hospital markets is only another focus area for Strides in the European market. At present, the company has international supply tie-ups with Aspen of South Africa, SORM of Japan and Akorn of the US.

Strides Arcolab is among the top 5 softgel capsule manufacturers with 12 global plants in USA, Mexico, Brazil and India.

Its areas of focus are the regulated markets of USA, Europe, Australia, New Zealand, South Africa and Japan.

In India, the company produces oral solid dosage forms including tablets, soft and hard gelatin capsules and injectables with a separate facility for beta lactams. The oral solids plant is rated amongst the best in the country. It has marketing presence in 50 countries.