Strides Shasun rose 2.73% to Rs 817 at 11:56 IST on BSE after the company said it acquired controlling stake in South Africa-based Trinity Pharma.
The announcement was made during trading hours today, 20 December 2017.Meanwhile, the S&P BSE Sensex was up 58.64 points, or 0.17% to 33,895.38.
On the BSE, 76,000 shares were traded in the counter so far, compared with average daily volumes of 80,000 shares in the past two weeks. The stock had hit a high of Rs 825 and a low of Rs 794.20 so far during the day. The stock hit a 52-week high of Rs 1,259 on 3 February 2017. The stock hit a 52-week low of Rs 754 on 9 November 2017.
Strides Pharma Asia, Singapore, a wholly-owned subsidiary of Strides Shasun, has entered into definitive agreements with Trinity Pharma, South Africa (Trinity) for acquisition of controlling stake in Trinity.
Under the terms of the agreement, Strides Pharma Asia, Singapore will acquire 55% stake in Trinity for a cash consideration of South African Rand 55 million (approximately Rs 27.50 crore). The current management will stay as minority partner and will continue to run the business under the supervision of Strides. The transaction is subject to customary closing conditions including approval from the South African regulatory authority, Transaction Regulation Panel and expected to close on or before 5 January 2018.
The transaction allows Strides to establish a presence in the high entry barrier market of South Africa where product dossier approval takes more than 5 years. It provides access to pipeline of more than 110 product dossiers already submitted. Acquisition comes with proven management and expertise in business development, marketing and regulatory services. Will be an important platform for Strides' ARV launch in the large, private non-tender market in South Africa. The transaction provides established distribution channel for faster commercialization of existing products of Strides, already registered in South Africa.
More From This Section
On a consolidated basis, net profit of Strides Shasun declined 87.44% to Rs 10.73 crore on 14.18% rise in net sales to Rs 995.60 crore in Q2 September 2017 over Q2 September 2016.
Strides Shasun is a vertically integrated global pharmaceutical company. The company has three business verticals, viz., regulated markets, emerging markets and active pharmaceutical ingredients.
Powered by Capital Market - Live News