The Board of Directors of Strides Arcolab and Shasun Pharmaceuticals have approved a scheme of amalgamation between the two companies. The combination creates a vertically integrated pharmaceutical company of scale with strong presence in front-ended regulated markets finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services.
The combination will significantly enhance finished dosages portfolio in niche and complex domains with a pipeline of over 100 products and accelerates product filings with a combined R&D strength of over 400 personnel. It will significantly de-risk its operations with the combined entity having 12 manufacturing facilities including three US FDA approved finished dosage manufacturing facilities, two US FDA approved API manufacturing facilities, one US FDA approved CRAMS facility and six manufacturing facilities catering to the emerging markets.
The merged entity will leverage Shasun’s best in class API manufacturing capacities and shift focus towards niche API’s aligned with finished dosages portfolio and pipeline. It will significantly synergy opportunities in operations and cost savings through economies of scale. The amalgamation will create a top 15-listed Indian pharma company by revenue with increased scale and visibility to drive future growth of the group.
Arun Kumar, Founder and Group Chief Executive Officer, Strides stated, “Since the divestment of our injectables business, which resulted in significant value creation for our shareholders, Strides has refocused on its oral finished formulation business. Today’s proposed combination with Shasun accelerates our strategy and growth prospects by creating a larger scale, fully integrated, leading Indian pharma company with multiple growth drivers and synergies that will allow for enhanced profitability and more efficient use of our combined infrastructure and enhanced value creation opportunities for the combined shareholder group. I am excited to work more closely with the Shasun promoters and leadership in jointly building the combined entity to become one of the leading global players.”
Abhaya Kumar, Chief Executive Officer and Managing Director, Shasun stated, “We are excited about combining with Strides, which has a tremendous track record of creating shareholder value. Strides and Shasun bring complementary strengths and shared values of developing products and market opportunities across geographies and the combination accelerates both scale and scope. We are confident that the vertically integrated new combination will deliver further additional value in the near term for all stakeholders above and beyond the strong gains we have achieved to date on our own.”
EP News Bureau– Mumbai
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