|
| Strides Arcolab to sell 49% in arm to Aspen for $12 mn |
| BS Reporter / Bangalore Sep 17, 2008, 01:09 IST |
|
Strides Arcolab, the exporters of branded generic pharmaceutical products, plans to sell the remaining 49 per cent stake in Strides Latina, its Latin American venture, to South Africa’s Aspen at a pre-arranged multiple of its EBITDA .
Strides Latina, owned by Strides Arcolab, mainly operates in Brazil as Cellofarm and in Mexico as Solara. It has marketing and trading operations in Venezuela as Sumifarma. Latin American operations were initiated in 2000 and generated sales of $75 million as on December 31, 2006. The company's Latin American business is at present valued at $280 million.
Announcing the stake sale today, Arun Kumar, vice-chairman and group CEO, Strides Arcolab, said, “Further to the announcement made in November 2007 and March 2008, the company has agreed to cede controlling interest in Strides Latina to Aspen and will now hold 49 per cent equity in the company till June 30, 2009.”
In an effort to concentrate and strengthen its core business, the company will divest the non-core fermentation business in Italy to PI Drugs and Pharmaceuticals. “This divestment will enable the company to cut down operating losses of over $10 million per annum in this business,” said Arun Kumar.
Strides has also completed the business restructuring of its units and plans to concentrate on three business segments — manufacturing, research and development and international front-ended business with a focus on generics and nutraceuticals business.
In manufacturing, research and development, the company’s strategy includes a licensing agreement with key partners on a global basis. The company recently signed a deal with GlaxoSmithKline (GSK) in partnership with Aspen for the emerging markets.
The company operates its international generics business through regional companies in Australia, Africa, Europe and North America through a combination of front-ended strategies and joint ventures to create value.
For emerging markets like India and Africa, Strides will develop drugs under the Grandix label.
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
