Strides Shasun has announced the signing of definitive agreements to acquire the entire shareholding in Perrigo API India for Rs. 1,000 million (Rs. 100 crore) and is expected to close by end of this year.
Perrigo’s API facility located in Ambernath, Maharashtra will augment Strides resources to handle high velocity of new product development and commercial launches in the formulations portfolio. Strides will also receive all the integrated DMFs (Drug Master Files) filed for captive consumption.
(A Drug Master File (DMF) is a submission to the Food and Drug Administration (FDA) that may be used to provide confidential detailed information about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of one or more human drugs.)
The facility has a production capacity of 600 tons per year and has had zero Form 483s in its last US FDA inspection. Perrigo reported a turnover of Rs. 737.60 million for financial year ending March, 2016 and has a gross asset base of Rs. 2,874 million.
Mr. Shashank Sinha, Group CEO of Strides Shashun said:
With this acquisition, we bring into our fold a manufacturing facility designed to handle multipurpose small batch productions and accelerates our time to market. This augurs well for the Strides’ stated strategy of building a backward integrated portfolio of niche and small volume products for the regulated markets.
This is not surprising since Perrigo in its latest SEC filing had confirmed its intention to sell the Indian API business.