Drug firm Strides Shasun will acquire Perrigo API India for ₹100 crore as it looks to build an integrated portfolio of niche products with small volumes in regulated markets.

The transaction is subject to customary closing conditions and is expected to be closed by December 31, the company said in a filing to the exchanges.

With the acquisition, Strides Shasun gets access to Perrigo’s India facility in Ambernath, Maharashtra, which is approved by US FDA. Further, this facility can be used for captive consumption and will aid Strides to handle new product development and commercial launches of its formulations portfolio.

The company executives said that Perrigo’s facility has a capacity of 600 tonnes per year and which also did not have any issues at the last FDA inspection.

As a part of this deal, Perrigo parent or affiliates will continue to source few products from the facility under a long-term supply agreement.

In the 2016 financial year, Perrigo India reported a turnover of ₹73.7 crore and had a gross asset base of ₹287.4 crore.

Shashank Sinha, Group CEO, Strides Shasun, stated: “With this acquisition, we bring into our fold a manufacturing facility designed to handle multipurpose small batch productions and accelerates our time to market.”

On hearing the news, Strides Shasun shares closed at ₹1,119.65, 3.3 per cent up from the previous day’s close.

This is the second acquisition that Strides has made since the last fortnight. In November, its wholly owned subsidiary Strides Arcolab International acquired Pediacare from Moberg Pharma for $5 million plus inventory.

Similarly, in March, Strides Shasun acquired three brands of Swedish-based pharma company Moberg Pharma for ₹67 crore, to strengthen its Over the Counter (OTC) drug offerings globally.

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