Strides Shasun buys stake in Australian and Kenyan pharma firms

Strides Shasun Ltd has acquired 51 percent stake in Australia-based Generic Partners Holdings and Kenya's Universal Corporation.
 
As per the deal with Australian firm, Strides Shasun will pay AUD 15 million for 51 percent stake in Generic Partners and has committed AUD 10 million investment to fund future R&D. The acquisition of Generic Partners, provides Strides Shasun immediate access to 47 commercialised marketing authorisations, making Arrow Pharmaceuticals Pty Ltd, Strides’ wholly-owned subsidiary, the second largest generic pharmaceutical products company in Australia with a portfolio of over 180 molecules.
 
The acquisition also provides access to 22 registrations pending approval with Therapeutic Goods Administration (TGA) and strong pipeline of 32 molecules including host of drugs going off patent in future. Going forward Arrow will consolidate its R&D initiatives for the Australian market under Generic Partners, which is one of Australia’s leading B2B suppliers of generic pharmaceticals.
   
Strides’ Universal Corporation acquisition in Kenya is an all cash deal and the total consideration will consist of an initial pay out of $11 million and a performance related earn out capped at $3 million. With this acquisition, Strides Shasun will get a strong presence in the key east African markets complementing its current capacities of six strategically located plants across major geographies in sub-Saharan Africa. Bangalore-based pharma firm plans to transfer several strategic institutional products to Universal facility as donor and government procurement agencies have a preference for ‘Made in Africa’ products.
 
The Nairobi-based Universal is strongly entrenched in the East African territory with its front end business and has supply contracts with key donor agencies. Universal’s facility is one of the two WHO pre-qualified sites in sub-Saharan Africa, other than South Africa.
 
Commenting on the Universal acquisition, Sinhue Noronha, chief executive officer - Emerging Markets, Strides Shasun, said, “The acquisition will help strengthen Stride Shasun’s business prospects in East Africa and offer additional capacity to support future growth in this region. The acquisition is in line with the company's focus of creating a leading branded generics and generics platform in Africa.”