Strides Shasun shines on acquisition of Perrigo’s API facility in India

Strides Shasun has signed definitive agreements to acquire the entire shareholding in Perrigo API India for Rs 100 crore. The transaction is subject to customary closing conditions and is expected to be closed during end of December 2016.Under the terms of agreement, Stride Shasun will acquire 100 per cent of the issued capital of Perrigo API India.

On the financial front, Perrigo API India’s revenue stands at Rs 73.76 crore in FY16 and gross asset base at Rs 287.4 crore. The company’s patent will continue to source few products from the facility under long term supply agreement.

Perrigo API India’s facility has potential capacity of 600 tons per year; and had zero 483s during its last US FDA inspection. Strides Shasun intends to transfer all integrated DMFs filled for captive consumption to the acquired facility.

Post transaction, the company will significantly scale up its API practice through upgrade of infrastructure and quality standards with a focus on building portfolio of backwardly integrated small molecules and catering to high entry barrier markets of Japan and South Korea.

The share price of Strides Shasun increased by 3.9 per cent on bourses in early trades; and is trading at Rs 1124 on an intraday basis.