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 14, 2024

Bayer taps new North America marketing chief for consumer health division

Life sciences

Avivi joins Bayer fresh off a yearlong stint as chief marketing officer of Advance Auto Parts, which followed about three years spent as marketing chief of another auto parts company, Tenneco. Rounding out her nearly 30-year career in marketing are leadership roles at consumer goods giants Kimberly-Clark and Procter & Gamble.

April 14, 2024

Air Liquide acquires healthcare businesses in Belgium and the Netherlands

Life sciences

Air Liquide S.A. (Paris) is continuing its development with the acquisition of Homecare activities in Belgium and the Netherlands. The two entities acquired in Belgium and the Netherlands support 10,000 patients living with respiratory insufficiency, sleep apnea syndrome or requiring infusion or nutrition treatments.

April 14, 2024

Vertex to acquire Alpine Immune Sciences for $4.9 billion

Life sciences

US-based Vertex Pharmaceuticals has agreed to pay approximately $4.9 billion in cash to acquire Alpine Immune Sciences, a compatriot biotechnology company focused on discovering and developing innovative, protein-based immunotherapies.

How can we help you?

We're easy to reach