Strides-Akorn sells product portfolio to Pfizer

Strides Arcolab, the Bangalore-based pharmaceutical company, on Thursday announced that it has struck a deal with Pfizer to sell 16 of its approved Abbreviated New Drug Approval (ANDAs) and six filed ANDAs.

These 22 filings were under an equal joint venture between Strides and US-based Nasdaq listed pharmaceutical company Akorn, which was formed in 2005. Strides will be entitled to $28.2 million in cash as its share of the consideration in addition to entering into supply agreement with Pfizer for manufacture and supply of these products. With this new pact Strides now has 66 various drugs which will be marketed by Pfizer across the globe. Strides, early this year, had struck a deal with Pfizer for 44 injectables, mostly in cancer care.

Strides-Akorn will, however, continue to manufacture and distribute a limited number of the approved products until April 30, 2011. According to officials close to the company, Strides is expected to move out from the JV during the second half of the next calendar.

Commenting on the transaction, Executive Vice-Chairman and Group CEO of Strides Arun Kumar said, “We are delighted that the divestiture of these products has created significant value for the joint venture partners. This transaction will further strengthen the strategic partnership between Strides and Pfizer.”

Group CFO, Strides, T S Rangan said the total value of this new deal was worth $63.20 million, 18 times the Ebidta of the joint venture. “We have taken a little less of the 50 per cent share as Akorn was involved in the marketing of these drugs, and moreover we would supply these drugs,” he said.