Strides Shasun, formed in November through the merger of Indian drug and API makers Strides Arcolab and Shasun Pharmaceuticals, has shelled out almost $30m (€27m) across two deals announced today, set to boost its presence in Africa and Australia.
The first sees the firm pay an initial $11m for a 51% stake in Universal, a Nairobi, Kenya-based pharma firm, and – according to Sinhue Noronha, CEO for Emerging Markets at Strides Shasun – “will help strengthen Strides Shasun’s business prospects in East Africa and offer additional capacity to support future growth in the region.”
The deal complements Strides Shasun’s current African network, adding one of only two WHO pre-qualified manufacturing facilities in Sub-Saharan Africa (not including South Africa), to its six facilities in the region, and strengthens the firm’s strategy of “in Africa, for Africa,” according to Noronha.
Universal will receive a further $3m depending on its financial performance for 2015.
In the second deal, Strides Shasun will pay AUD15m ($10.6m) for a 51% stake in Australian pharmaceutical supply and research company Generics Partners Holdings.
The deal will add 47 commercialised marketing authorisations to Shasun’s Australian subsidiary Arrow, making it the second largest generics firm by portfolio in the region.
Arrow’s CEO Dennis Bastas said the partnership “enhances the company’s competitive abilities across the value chain in the Australian generic pharmaceutical market.”
The deal is expected to close by April 30.