INDIA – Strides Pharma Science has announced that its wholly owned subsidiaries have entered into definitive agreements with subsidiaries of Endo International to acquire its manufacturing facility in New York and a basket of ANDAs.
The drug company signed definitive agreement with Endo to acquire its manufacturing facility in the US along with basket of ANDAs.
The proposed acquisition will further bolster Strides’ US presence through acquisition of a multi dosage facility in the US and a basket of ANDAs cutting across multiple therapeutic segments. The cumulative addressable market for the acquired portfolio is US$4.7 billion.
Under the terms of the agreement, Strides will pay US$24 million for the acquisition. The transaction will be financed by a combination of internal accruals and debt financing and is expected to close in CY2021 subject to customary closing conditions.
Commenting on the development, Dr. R. Ananthanarayanan, MD & CEO, said, the acquisition is a very good strategic fit for the business and will help further accelerate growth momentum for the US market.
“The US is now the largest market for Strides contributing 48 per cent of FY21 consolidated revenue. The proposed acquisition will further bolster Strides US presence through acquisition of a multi-dosage facility in the US and a basket of ANDAs cutting across multiple therapeutic segments,” the company added.
The facility at Chestnut Ridge, New York has an annual capacity of 2 billion units across semisolids, liquids, nasal sprays along with oral solids.
The facility is also registered with the Drug Enforcement Administration (DEA) enabling manufacturing of controlled substances.
Considering the COVID-19 disruptions, this facility being in the US will enable us to mitigate supply chain related bottleneck and will drive logistics related synergies for the US business.
Strides said the facility has undergone several successful USFDA inspections in the past and has received the Establishment Inspection Report (EIR).
The acquired portfolio has 20 commercial products and a basket of dormant ANDA’s which will help fast track our new launch strategy for US markets with 5-6 new product introductions every quarter.
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