Strides Pharma to acquire Endo's manufacturing facility at New York

Strides Pharma Science on Friday announced that its wholly owned subsidiaries have entered into definitive agreements with subsidiaries of Endo International to acquire its manufacturing facility in New York and a basket of ANDAs.

The drug company signed definitive agreement with Endo to acquire its manufacturing facility in the US along with basket of ANDAs. The proposed acquisition will further bolster Strides US presence through acquisition of a multi dosage facility in the US and a basket of ANDAs cutting across multiple therapeutic segments. The cumulative addressable market for the acquired portfolio is $4.7 billion.

Under the terms of the agreement, Strides will pay $24 million for the acquisition. The transaction will be financed by a combination of internal accruals and debt financing and is expected to close in CY2021 subject to customary closing conditions.

The facility at Chestnut Ridge, New York has an annual capacity of 2 billion units across semisolids, liquids, nasal sprays along with oral solids. The facility is also registered with the Drug Enforcement Administration (DEA) enabling manufacturing of controlled substances. Considering the COVID-19 disruptions, this facility being in the US will enable us to mitigate supply chain related bottleneck and will drive logistics related synergies for the US business. Strides said the facility has undergone several successful USFDA inspections in the past and has received the Establishment Inspection Report (EIR).

Being in the US, the facility will be able to participate in various federal government procurement programs including the Department of Veterans Affairs. The acquisition will further strengthen the company's ability to cater to federal contracts. The acquired portfolio has 20 commercial products and a basket of dormant ANDA's which will help fast track our new launch strategy for US markets with 5-6 new product introductions every quarter.

Commenting on the development, Dr. R. Ananthanarayanan, MD & CEO, said, The acquisition we have announced today is a very good strategic fit for the business and will help further accelerate our growth momentum for the US market. With this acquisition we have doubled our US portfolio with a potential to launch 5-6 new products each quarter going forward.

Strides Pharma Science is a global pharmaceutical company. Shares of the drug company were trading 0.51% lower at Rs 778 on BSE.

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