Jordan's GMS to invest $29 mn in Strides Arcolab's biotech arm Stelis

GMS Holdings, the Jordan-based privately owned investment company, has agreed to invest $ 29.1 million (about Rs 179 crore) for 25.1% stake in Stelis Biopharma Ltd, the biotech arm of Strides Arcolab, to fund its greenfield project. This follows a decision of Strides Arcolab to invest $ 20 million, of the $150 million received by it from Mylan Inc as the full and final settlement deal for acquiring Strides' specialties business, in biotech business.
 
Till date, Strides has invested $ 16.9 million in Stelis. As per the agreement with GMS, Strides and GMS Holdings will invest $61.9 million taking total equity investment in Stelis to $ 78.8 million.
 
GMS investment in Stelis Biopharma will be in phases. First, GMS will invest $8.5 million for 25.1% stake in Stelis. Further equity infusion of $40 million by Strides and $ 13.4 million by GMS Holdings will be in tranches based on project and product development needs over a period of two years, in proportion to their ownership at par.
 
Joe Thomas, Chief Corporate Development Officer of Strides Arcolab and Head - Biotech division, said, "GMS Holdings has a track record of having partnered in successful businesses, with a strong presence in MENA (Middle East and North Africa) region. This partnership will accelerate our emerging market strategy for the biotech business."
 
"Strides has a long track record of building successful pharma platforms and we believe that by joining our efforts on this investment we can create significant value for both our groups," stated Ghiath Sukhtian, Chairman of GMS Holdings, which has invested in businesses such as pharmaceuticals, telecom, oil field services, agriculture, real-estate, etc.