Bangalore, Sept 18, 2008: Bangalore-based pharma company Strides has completed a series of divestments and acquisitions to rearrange its business on three specific business segments:

1) Manufacturing and R&D

2) International Front-ended Business - Generics

3) Brands and Nutraceuticals Business

 

As a result the company has done reshuffled its business globally.

 

 Starting with its Latin American operations, Strides is ceding its control over its LatAm business to South African pharma company Aspen and will now hold 49% equity in the company for a transition period until June,30, 2009, when Strides intends to sell the remaining 49% to Aspen.

 

The transfer of controlling interests values the Latam business at $280 million. The effective sale consideration for the entire share capital of the LatAm Operations will amount to 9.32 times the EBITDA up to $11.94 million plus 11.18 times the EBITDA over $11.94 million.

 

As part of its continuous effort to concentrate and strengthen the core business, the non-core fermentation business in Italy to be divested in favor of PI Drugs and Pharmaceuticals.

This divestment will enable company to cut down operating losses of over $10 million per annum in this business.

 

Arun Kumar, Vice-Chairman and Group CEO of Strides said, “Consequent of above changes and with Integration of Ascent Pharmahealth Business in Australia (erstwhile Genepharm) into the Group, Strides has strongly positioned itself to accelerate growth led by a global manufacturing strategy strongly backed by R&D that includes licensing agreement with key partners on a global basis. The company recently announced a significant transaction with GSK in partnership with Aspen for the emerging markets.

 

A.  An International organization with regional operating companies in Australasia, Africa, Europe and North America through a combination of front-ended strategies and through JVs to create value. The company recently completed a majority ownership transaction in Ascent Pharmahealth Australia.