Drug firm Strides to withdraw investment from Arrow Pharma for over Rs. 2,000 crores

Drug firm Strides Pharma Science Tuesday said it has decided to exit its investment in Arrow Pharmaceuticals for AUD 394 million (over Rs 2,000 crore). The company's step-down subsidiary Strides Pharma Global Pte Ltd has approved the sale of its entire Australian business to the Arrow-Apotex merged entity, Strides Pharma Science said in a filing to the BSE.

"Strides will receive AUD 300 million as upfront payment at the closure of the transaction, while the balance AUD 94 million to be deferred through a secured instrument," it added. In a separate filing, the company said its step-down subsidiary Strides Pharma Inc has entered into an arrangement to acquire 100 percent stake in US-based generics company Vensun Pharmaceuticals Inc.

Founded in 2011, Vensun follows an asset-light partner-driven business model to develop products for the US generics markets, Strides Pharma Science said. In another filing, the company said its board of directors and its step-down subsidiary Strides Pharma Global Pte Ltd, Singapore, have approved to convert their 50:50 JVs with Vivimed to 100 percent ownership.

"Consequently, Strides will acquire balance 50 percent stake in Vivimed Life Sciences Pvt Ltd, India and its step down subsidiary, Strides Pharma Global Pte, Singapore, will acquire the balance 50 percent stake in Strides Vivimed Pte Ltd, Singapore to own and operate the erstwhile joint venture companies fully," it added. The company also said its step-down subsidiary Strides Pharma Canada Inc has entered into an arrangement to acquire 80 percent stake in Pharmapar Inc for a consideration of CAD 4 million. Founded in 1998, Pharmapar specialises in generic medication to privately insured individuals in Canada, it added.

(With inputs from agencies.)