Strides Shasun gains on plans to acquire brands from Moberg Pharma

The company's arm plans to acquire Jointflex, Fergon and Vanquish brands for a total consideration of US $10 million

Shares of Strides Shasun have surged nearly 4% to Rs 1,073 on the Bombay Stock Exchange after the company said it subsidiary plans to acquire three brands from Sweden-based Moberg Pharma.

The company in a release said that is wholly-owned subsidiary Strides Pharma Inc., has entered into an agreement with Moberg Pharma, Sweden and its affiliates to acquire Jointflex, Fergon and Vanquish brands for a total consideration of $10 million plus inventory value at closing.

The transaction adds US $6.1 million of revenues and delivers above company EBITDA margins. The transaction is immediately accretive and is expected to close within next four weeks, the release added.

The stock opened at Rs 1042 and touched a high of Rs 1075. At 10:15am, over 150,000 shares were traded on both the stock exchanges.