Sector News

India’s Strides Arcolab to buy Shasun Pharma for $200 mln in all-stock deal

September 29, 2014
Life sciences
(Reuters) – India’s Strides Arcolab Ltd has agreed to buysmaller rival Shasun Pharmaceuticals Ltd in an all-stock deal, valued at about $200 million, to bolster its generic medicine and drug ingredient businesses.
 
Shasun, which has a market value of $193.5 million, makes drug ingredients and finished medicines, as well as provides contract research and manufacturing services. It supplies to North America, Europe, Asia and Latin America.
 
The acquisition is expected to close by June 2015, and is subject to regulatory approvals, the companies said in a stock exchange filing on Monday.
 
The deal is part of a consolidation in the pharmaceutical sector, which was expected to happen after Sun Pharmaceutical Industries Ltd agreed in April to buy local rival Ranbaxy Laboratories Ltd for $3.2 billion to create the world’s fifth largest maker of generic drugs.
 
Under the terms of the deal, Shasun shareholders will get five Strides shares for every 16 held in Shasun, the companies said in a joint statement. That values Shasun at roughly $200 million based on the stocks’ closing price on Friday.
 
The combined entity, in which Shasun shareholders will own 26 percent, will have 12 manufacturing plants and a pipeline of over 100 products, said the statement.
 
In February last year, Strides sold its injectable drugs business to U.S. firm Mylan Inc for $1.6 billion.
 
Shares in Strides rose as much as 12.8 percent to 724 rupees after the deal announcement on Monday, while Shasun ended down 0.3 percent at 196.15 rupees. The main Mumbai market index fell 0.1 percent. (Reporting by Zeba Siddiqui; additional reporting by Devidutta Tripathy; Editing by Sumeet Chatterjee and Miral Fahmy)

comments closed

Related News

April 26, 2024

Former Bristol Myers CEO tapped as Novartis’ next board chair

Life sciences

Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.

April 26, 2024

GE HealthCare launches voice-activated, AI-powered ultrasound machines for women’s health

Life sciences

GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.

April 26, 2024

Scientists reveal new method that could reduce waste from drug manufacturing

Life sciences

Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.

How can we help you?

We're easy to reach