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Drug firm Strides Arcolab has taken a majority stake in the Indian branded generics business of Bafna Pharmaceuticals for ₹48.1 crore, thereby giving its domestic business an impetus.
In a filing to the stock exchanges, the Bangalore-based pharmaceutical company said that acquiring 74 per cent in Raricap (branded generics business of Bafna) will help it to strengthen the women and child care portfolio of Strides' branded generics business, leverage Bafna's all-India presence and reach out to a larger patient base in southern India, according to company officials.
Bafna's India's branded generics business will be transferred to a Special Purpose Vehicle (SPV) and the Bangalore-based company will pay for the 74 per cent in cash to Bafna and the balance 26 per cent through equity, according to a company statement.
The Indian generics business of Bafna has presence in 17 states, with a worforce of 400 employees and had revenues of ₹24.6 crore in March this year.
As a part of the deal, Bafna will continue to manufacture these products for this SPV along with IP and manpower.
Further, acquiring Bafna's brand will also help Strides flagship prevention and treatment brand called ReNerve to get into new market segments, according to company officials.
Strides is aggressively looking at inorganic growth through acquisitions and investments in other pharmaceutical companies.
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