Strides Pharma Science Limited (Strides) announced that its step down subsidiary Strides Pharma Global Pte Ltd(SPG) has acquired a majority stake in Fairmed Healthcare AG(Fairmed), a Switzerland based company with a portfolio of high‐quality generic products encompassing prescription and over‐the‐counter drugs across several therapeutic segments.
Under the terms of the agreement, SPG will hold 70% of the issued capital of Fairmed. Strides have infused CHF 2.2 mn into the entity in lieu of the equity stake.
The Other Regulated market for Strides comprises of its businesses in the UK, EU, South Africa, Canada and the supplies to Australia.
It is the fastest-growing market for Strides led by a hybrid R&D strategy based on portfolio maximization across multiple markets, leveraging its established regulated market portfolio. This market contributed 26% to FY19 revenues, growing 30%+ YoY primarily on portfolio expansion and enhanced marketing footprint across key regulated markets outside of the US.
Fairmed has built a strong franchise of supplying high‐quality Rx and OTC products in key European markets and the acquisition will augment Strides’ footprint in continental Europe with a direct presence in the German-speaking markets of Germany, Austria and Switzerland collectively called as DACH region.
Strides’ vast international product portfolio and Fairmed’s market access in the DACH region is a highly complementary combination to pivot an extensive growth in the coming years.
Fairmed had a net sales of Euro 5.8 mn in CY 18 driven mainly by its frontend presence and a portfolio of 30+ products.
The business will incrementally have access to Strides’ already approved product portfolio for the markets Fairmed operates in with supplies from several of its EU approved facilities.
Strides Pharma Science Ltd is currently trading at Rs399.55, up by Rs0.75 or 0.19% from its previous closing of Rs398.80 on the BSE. – IIFL