Strides Shasun buys Perrigo's APIs facility in India for Rs 100 crore

Strides Shasun Ltd has acquired the US-based Perrigo's APIs (active pharmaceutical ingredients) manufacturing facility in Ambernath (Maharashtra) for Rs 100 crore. The agreement to acquire the US FDA approved plant was signed by the company with Perrigo API India Pvt Ltd, which reported a turnover of Rs 73.76 crores for the financial year ended March 31, 2016.

Pursuant to the merger with Shasun Pharmaceutical Ltd in 2014, the company got access to two US FDA API facilities, which met its requirements for captive consumption and commodity APIs. To separate the commodity API business from integrated APIs, Strides Shasun recently hived off its commodity API business into a separate entity. 

Strides Shasun will use Perrigo's Ambernath plant for captive consumption and will augment the company's resources to handle high velocity of new product development and commercial launches in the formulation portfolio.

The facility, with a potential capacity of 600 tonnes per year, had zero 483s during its last US FDA inspection. The company intends to transfer all the integrated DMFs filed for captive consumption to the acquired facility.

As per the agreement, Perrigo parent or affiliates will continue to source few products from Ambernath facility under a long term supply agreement. 

“With this acquisition, we bring into our fold a manufacturing facility designed to handle multipurpose small batch productions and accelerates our time to market. This augurs well for the Strides' stated strategy of building a backward integrated portfolio of niche and small volume products for the regulated markets," commented Shashank Sinha, group CEO, Strides Shasun.