Strides Shasun gains as Mylan agrees to settle claims on Agila transaction

The stock was up 4% to Rs 1,095 on BSE in early morning trade.

Strides Shasun was up 4% to Rs 1,095 on BSE in early morning trade after the pharmaceuticals company announced that Mylan agreed to settle regulatory and general claims on Agila transaction.

“Strides and Mylan have agreed on a full and final settlement of all regulatory claims notified by Mylan to the company and the subsidiary,” Strides Shasun said in press release.

Pursuant to this full and final settlement, Mylan’s regulatory concerns claims will be satisfied from the regulatory escrow, and Strides will receive approximately US$ 30 million, representing the balance of funds it deposited in the regulatory escrow on consummation of the Agila sale pursuant to the Sale and Purchase Agreements, it added.

In addition, Strides and Mylan have now agreed on a full and final settlement of the Warranty and Indemnity Claims. The general claims escrow continues to be valid till December 2017.

In past one-week, post July-September (Q2FY17) quarter results, the stock rallied 14% from Rs 940 on October 27.

Strides Shasun had reported a more than doubled consolidated net profit of Rs 74.09 crore for Q2FY17. It had posted a profit of Rs 35.81 crore in year ago quarter. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 100 basis points to 18% from 17%.

The company has guided EBITDA between Rs 440 crore to Rs 475 crore for H2FY17 for the pharmaceutical business (excludes biotech). It had reported EBITDA of Rs 364 crore in H2FY16.

At 09:34 am, the stock was up 2% at Rs 1,069 on BSE, as compared to 0.12% rise in the S&P BSE Sensex. A combined 193,591 shares changed hands on the counter on BSE and NSE so far.