Strides Pharma’s plans of becoming the largest generics drug maker in Australia got a boost on Thursday with the Australian Competition and Consumer Commission (ACCC) deciding not to oppose the merger of its two entities in the region.
The Australian regulator was of the view that the transaction would not substantially lessen competition. The issue pertains to Strides Shasun’s decision in May to merge its Australian business (called Arrow Pharmaceuticals in Australia) with the local operations of Apotex Inc.
Further, Strides Pharma Science Ltd and Apotex Inc had said at the time that the merger would give rise to a new company.
The transaction remains subject to the conclusion of definitive agreements, Board approval and the satisfaction of certain other conditions, including approval from the Australian Foreign Investment Review Board.
Australia contributes around a third of Strides’ revenues and the combined entity is now expected to contribute to half of the company’s revenues. The Australian generics pharma market is valued at $1.1 billion and is dominated by four players — Strides, Apotex, Mylan and Sandoz.