Drug maker Strides Shasun Ltd has agreed to buy controlling stakes in an Australian and a Kenyan company for $28.7 million.
This will help Strides Shasun to expand its presence in Australia and establish a presence in East Africa through the acquisitions.
The company said it had acquired a 51% stake in Australian pharmaceutical supply and research company Generic Partners Holdings Co. Pty Ltd in an all-cash deal involving an upfront payment of A$15 million ($10.6 million), and a commitment of A$10 million ($7 million) to fund future research and development at the firm. The acquisition also provides access to 22 registrations pending approval with Australian drug regulator Therapeutic Goods Administration and a strong pipeline of 32 molecules including a host of drugs going off patent in the future, the company said. In Australia, Generic Partners’ customer base includes the top five generic pharmaceuticals companies. Generic Partners, based in Melbourne, is focused on research and development. The company currently develops and licenses out products to customers in Australia, Europe, Canada, the US and South Africa.
East African Market:
Strides Shasun said it had also agreed to acquire a controlling stake in Kenya-based Universal Corporation Ltd (Universal) in an all-cash deal consisting of an initial payout of $11 million and a performance-related payout capped at $3 million for achieving Ebitda of $2.95 million for 2015.
Strides acquisition will give Strides a foothold in the East African markets and will complement its current capacities of six plants across major geographies in Sub-Saharan Africa.