Drugmaker Strides Shasun Ltd said on Friday it will buy Sweden-based Moberg Pharma's paediatric brand – PediaCare – for $5 million as the company aims to expand its consumer healthcare portfolio.
PediaCare is an established paediatric cough, cold and allergy brand with annual sales of about $6 million, Strides said in a statement. The acquisition was done through its wholly-owned subsidiary Strides Acrolab International Ltd, UK, it added.
The brand will form an important part of Strides expanding consumer healthcare portfolio and brings with it expertise in the paediatric segment, it said.
This acquisition follows Strides acquiring three brands – JointFlex, Fergon and Vanquish – from Moberg Pharma for $10 million plus inventory value early in March to build its portfolio of over-the-counter (OTC) products.
Other major pharmaceuticals companies are also expanding their consumer healthcare portfolio in the past months. In April, Cipla floated its newly-formed consumer healthcare subsidiary Cipla Health Ltd, in which PE firm Eight Roads Ventures has a minority stake. While in May Dr. Reddy's Laboratories Ltd acquired a portfolio of half a dozen over-the-counter (OTC) drug brands from American drugmaker Ducere Pharma to enter the branded consumer health business in the US.
Meanwhile, Strides Shasun has been on an acquisition and divestment spree over the past year.
In February, Strides Shasun agreed to pay AUD 15 million (US $10.6 million) upfront to buy a 51% stake in Australian pharmaceutical and research company Generic Partners Holdings Co. Pty Ltd and acquire a 51% stake in Kenyan drugmaker Universal Corporation Ltd for an initial payout of $11 million in cash.
In May, Strides said its board approved the divestment of its contract research and manufacturing services and API unit, Shasun Pharma Solutions Ltd, UK, for an enterprise value of £25 million (Rs 240 crore).
Later in August, the company received board approval to hive off its active pharmaceuticals ingredients (API) business into a wholly-owned subsidiary.
Strides Shasun makes tablets, hard- and soft-gelatin capsules, sachets and semi-solids, among others. It has 14 manufacturing facilities across three continents. It has three dedicated R&D facilities in India with global filing capabilities and commercial footprint across 85 countries.
Shares of Strides Shasun ended at Rs 1081.05 apiece on the BSE, up 0.63% in a strong Mumbai market.
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