Strides Shasun to divest its UK arm for Rs.240 cr

The Dollar Business Bureau

Pharma firm Strides Shasun Ltd has taken a decision to divest its UK-based subsidiary Shasun Pharma Solutions Ltd (SPSL) to its current management for a value of £25 million (about Rs.240 crore).

The company in a statement filed to BSE said, “The board of directors in a meeting on Tuesday cleared the divestment of SPSL, UK, to its current management team with investment by the Strides Shasun’s promoter group for an enterprise value of £25 million.”

In 2006, Shasun had bought SPSL from Rhodia Pharma Solutions, a leading player in the domain of Contract Research Manufacturing Services (CRAMS). Since 2014, SPSL’s current management has shifted its focus from being a core CRAMS player to multiple industry domains including services, the statement added.

"The deal is expected to reach closure in the Q2 of the financial year 2017", the company said, adding that the deal will be at an arm’s length basis.

Strides Shasun, in a separate statement, said that Arrow Pharmaceuticals Pty Ltd, its fully-owned subsidiary in Australia, has “signed a contract with Pharmacy Alliance for a 10-year supply partnership and trading platform.”

The new contract also comprises funding by Arrow Pharmaceuticals in Pharmacy Alliance's agenda for growth and retail innovation.

The current supply partnership is an expansion of the existing supply contract that was in place between the Pharmacy Alliance and Aspen, before the acquisition of Aspen Generics & Chemists' Own portfolio by Arrow in September 2015.