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

October 17, 2021

Colorcon acquires a majority share in Ideal Cures Pvt. Ltd., India

Life sciences

Ideal Cures will operate as a fully independent entity within Colorcon. Their business complements Colorcon’s position in the Indian pharmaceutical market with a strong presence in the domestic generic sector comprised of long-standing customer relationships sustained by innovative and customized solutions.

October 17, 2021

Barriers exist, but participation urgent in breast cancer clinical trials: report

Life sciences

Across four new breast cancer treatments approved by the FDA last year, 2% to 9% of patients in clinical trials for the drugs were Black Americans and 0% to 9% were Hispanic, according to a new report from Breastcancer.org.

October 17, 2021

Danish consortium acquires part of Jernbanebyen to create one of the world’s healthiest urban villages

Life sciences

The southern section of Jernbanebyen in central Copenhagen has a new owner. The Baneby Consortium, comprising NREP, Novo Holdings and Industriens Pension, has bought the land from Freja Ejendomme. The ambition is to create a green, partly car-free environment that will also be one of the healthiest in the world. 

Send this to a friend