Strides Shasun on February 08, 2016 announced the signing of definitive agreements to acquire a strategic stake in Generic Partners Holdings Co. Pty Ltd., an Australian pharmaceutical supply and research company. The transaction is subject to statutory approvals & customary closing conditions and expected to close by April 30, 2016.
The acquisition provides Strides Shasun immediate access to 47 commercialised marketing authorizations making Arrow the second largest generic pharmaceutical products company in Australia with a portfolio of over 180 molecules. The acquisition also provides access to 22 registrations pending approval with TGA and strong pipeline of 32 molecules including host of drugs going off patent in future. Going forward Arrow will consolidate its R&D initiatives for the Australian market under Generic Partners, leveraging its strong product development and registration capabilities.
Generic Partners is one of Australia’s leading B2B suppliers of generic pharmaceuticals. The business will continue to work independently with all its existing supply partners and customers using the additional resources of Strides Shasun to build a stronger supply channel for the Australian market.
The current management team of Generic Partners led by its CEO and Managing Director, Mr Sanjiv Puri will continue to manage the business independently.
Transaction Terms & Structure:
Under the terms of the agreement, Strides Shasun will hold 51% of the issued capital of Generic Partners and the remaining equity will continue to be held by the current promoters. This is an all–cash deal for an upfront consideration of AUD 15 Million and a commitment of AUD 10 Million to fund future R&D. The acquisition shall be made through Arrow Pharmaceuticals Pty Ltd, a wholly owned subsidiary of Strides Shasun.
Commenting on the Transaction, Mr Dennis Bastas, CEO of Arrow said, “The partnership with Generic Partners is of strategic importance to Arrow and enhances the company’s competitive abilities across the value chain in the Australian generic pharmaceutical market. Generic Partners gives Arrow and its other generic customers a strong supply platform that will support sustainable pricing in Australia and deliver an extensive new product development pipeline.”