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Strides Shasun gains on merger of Australian businesses

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Capital Market
Last Updated : May 09 2018 | 3:50 PM IST

Strides Shasun rose 3.28% to Rs 570.40 at 15:16 IST on BSE after the company announced that it has agreed with Apotex, in principle, to merge their respective Australian business operations.

The announcement was made during market hours today, 9 May 2018.

Meanwhile, the S&P BSE Sensex was up 111.48 points or 0.32% at 35,327.80.

On the BSE, 1.11 lakh shares were traded on the counter so far as against the average daily volumes of 37,000 shares in the past two weeks. The stock had hit a high of Rs 577 and a low of Rs 545 so far during the day. The stock had hit a 52-week high of Rs 1,066.17 on 24 July 2017 and a 52-week low of Rs 535.95 on 7 May 2018.

The mid-cap company has equity capital of Rs 89.55 crore. Face value per share is Rs 10.

Strides Shasun announced that it has agreed with Apotex, in principle, to merge their respective Australian business operations. The transaction is subject to entering into definitive agreements between the parties, satisfactory due diligence, customary closing conditions and statutory approvals, including approval of Australian Competition and Consumer Commission (ACCC).

The combination will enable Strides, through the merged business, to become the leading player in the Australian generic pharmaceutical market by both volume and revenue. The proposed transaction will be EPS accretive from year 1 through merger synergies. The merged business will have the largest portfolio of owned product IP for the Australian market

Strides Shasun is one of the leading generic players in the Australian pharmaceutical market and runs its business under the Arrow brand. Apotex is the leading generic player in the Australian pharmaceutical market and runs its business under the Apotex brand.

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On a consolidated basis, Strides Shasun's net profit fell 56.6% to Rs 85.22 crore on 2.6% growth in net sales to Rs 749.04 crore in Q3 December 2017 over Q3 December 2016.

Strides Shasun is a vertically integrated global pharmaceutical company headquartered in Bangalore. The company has two business verticals, viz., Regulated Markets and Emerging Markets.

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First Published: May 09 2018 | 3:26 PM IST

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