Arrow will incur an amount of AUD 17 million towards consideration, working capital and other estimated acquisition and integration related costs
Arrow Pharmaceuticals, Australia, a subsidiary of Strides Pharma Global, Singapore acquired the Australian operations of Amneal Pharmaceuticals. The acquisition would accelerate Arrow’s market reach and will help in attaining a leadership position in the Australian generics market.
Amneal’s operations in Australia required higher operating spends to deliver their historical revenues. The business integration into the Arrow’s front-end model is expected to deliver a sustainable profitability through improved operating leverage. Complete integration is expected to happen over the next 12 months.
Post integration of the business, the acquisition is expected to add annual revenues of ~AUD 25 million, improve Arrow’s generics market share to ~22 per cent adding ~200 new first-line stores expanding its first-line pharmacies to more than 1200 stores.
In line with the strategic intent, Arrow has expanded its product portfolio over the last two years from ~150 molecules to ~170 molecules today. This acquisition further bolsters its product portfolio with the addition of 13 molecules to the Arrow range.
The acquisition also provides for significant synergy opportunities with 100+ molecules being common with the Arrow portfolio. Post successful integration, all the molecules will be unified under the Arrow brand.
Under the terms of the agreement, Arrow Pharmaceuticals will acquire 100 per cent of the issued capital of Amneal Pharmaceutical, Australia. Arrow will incur an amount of AUD 17 million towards consideration, working capital and other estimated acquisition and integration related costs.
Dennis Bastas, Chairman, Arrow Pharmaceuticals, said, “The acquisition of Amneal’sAustralian operations further expands our customer footprint. We have been fortunate to have experienced strong organic growth across our primary customer base within both our prescription medicines and Chemists’ Own portfolio. Bringing Amneal’s customer base into our network of supporting pharmacies further accelerates this current growth and strengthens the offering we bring to all our customers.”