Sun Pharma signs deal with Strides Arcolab

To transfer erstwhile Ranbaxy’s Solus and Solus Care divisions, along with employees to Strides

Sun Pharmaceutical Industries and Strides Arcolab have entered into a definitive agreement related to erstwhile Ranbaxy’s Solus and Solus Care divisions operating in the central nervous system (CNS) segment in India.

The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs 1,650 million. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 920 million in sales. During the divestment process, Sun Pharma was cognizant that the interests of its employees working in Solus and Solus Care divisions were not compromised.

Abhay Gandhi, Chief Executive Officer, India Business, Sun Pharma said, “The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India. We have evaluated each and every therapy segment that we are present in and how these businesses can grow going forward. Based on this evaluation, we firmly believe that the potential of Solus and Solus Care divisions can be greatly enhanced with the focus that Strides will put in growing them. The divestment will help these divisions, its customers and the team.”

Subroto Banerjee, President – Brands, India, Strides said, “The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India. The specialty nature of CNS products makes brand equity and customer relationships, key determinants of success. The Solus and Solus Care divisions readily qualify for both these parameters.”

EP News BureauMumbai