Strides Shasun Ltd said on Monday it has agreed to acquire three brands from Sweden-based Moberg Pharma for $10 million plus inventory value at closing, as the Indian drugmaker seeks to build its portfolio of over-the-counter (OTC) products.
The three brands–JointFlex, Fergon and Vanquish–are marketed in the US, Australia and the Middle East, Strides Shasun said in a stock market disclosure.
JointFlex and Vanquish are pain relieving cream and tablets, respectively, while Fergon is an iron supplement.
The acquisition is being done through its wholly owned Strides Pharma Inc unit. The transaction is expected to close in the next four weeks.
The deal will add $6.1 million (about Rs 41 crore) to the Indian company’s revenue.
The drugmaker's consolidated revenue had risen by 31 per cent to Rs 854 crore in the quarter ended December 31, 2015 against Rs 652 crore a year earlier. These numbers exclude the numbers for Shashun Pharmaceutical and its group firms that merged into Strides Arcolab last year to form Strides Shasun. After including the numbers of all merged firms, the total revenue was Rs 1,514.6 crore.
"The recent acquisitions have enabled Strides Shasun to build an emerging OTC franchise both in its regulated and emerging markets. The announced acquisition strengthens Strides Shasun's strategy to build a global OTC franchise," the company said.
Strides Shasun's OTC portfolio includes Chemist Own umbrella brand in Australia and Nuprin brand in the US. The company has also filed Abbreviated New Drug Applications that will help enhance its OTC portfolio in the US, it added.
The company has been on an acquisition spree over the past few months. In February, it said it will acquire controlling stakes in Australia’s Generic Partners Holdings Co Pty Ltd and Kenyan company Universal Corporation Ltd to strengthen its presence in the two countries.
In May 2015, Strides signed a deal to acquire South African drugmaker Aspen Pharmacare's generic pharmaceutical business in Australia together with certain branded pharma assets.
Strides Shasun makes tablets, hard- and soft-gelatin capsules, sachets, potent drugs and semi-solids. It has 12 manufacturing facilities across three continents. The Indian company had raised about Rs 1,102 crore by selling shares to institutions in December.