Drugmaker Strides Shasun Ltd said on Thursday unit Arrow Pharmaceuticals has acquired the Australian operations of US-based Amneal Pharmaceuticals for AUD 17 million (Rs 86.2 crore).
The acquisition will help Arrow Pharmaceuticals expand its presence in the generics market in Australia, Strides Shasun said in a statement. Arrow operates as the Australian subsidiary of Strides Shasun’s Singapore unit, Strides Pharma Global Pte Ltd.
Amneal, which was founded in 2002 by brothers Chintu and Chirag Patel, started operations in Australia in 2014. It sells generic medicines and branded over-the-counter (OTC) products.
Arrow chairman Dennis Bastas said in the statement that bringing Amneal’s customer base into its network of pharmacies will accelerate the company’s growth and strengthen its product offerings.
The acquisition is likely to add AUD 25 million to Arrow's annual revenue and improve its generics market share to 22%. It will also help add 200 new first-line stores to take its first-line pharmacies to more than 1,200 stores, the statement added.
Stride said that the acquisition offers synergy opportunities with over 100 molecules being common with the Arrow portfolio. After the two entities are integrated over the next 12 months, all the molecules will be unified under the Arrow brand.
Arrow has expanded its product portfolio over the last two years from 150 molecules to 170. This acquisition adds 13 molecules to the Arrow range.
The company has been on an acquisition spree in recent years. In May, Strides Shasun agreed to acquire a 50% stake each in two wholly owned subsidiaries of Hyderabad-based Vivimed Labs Ltd.
In February, Strides and SeQuent Scientific Ltd agreed to merge some of their bulk drugs businesses.
Strides Shasun also sold its African generics business for around Rs 108 crore.
Last year, it acquired Perrigo’s bulk-drugs plant for around $14 million. It also acquired three brands of Moberg Pharma AB for $10 million.
Strides Shasun has nine manufacturing facilities spread globally including seven facilities approved by the US Food and Drug Administration and two facilities for the emerging markets.