Drugmaker Strides Shasun Ltd has agreed to acquire a 55% stake in South Africa-based Trinity Pharma Proprietary Ltd for Rs 27.5 crore ($4.3 million) in an all-cash deal.
The firm will acquire the controlling stake in Trinity Pharma through its wholly owned subsidiary Strides Pharma Asia Pte. Ltd, Strides Shasun said in a stock exchange disclosure.
The deal will help Strides Shasun enter a high entry barrier market and provide a platform to launch its anti-retroviral drugs (ARVs) in private non-tender market, the firm said.
Trinity Pharma has proven management and expertise in business development, marketing and regulatory services and provides an established distribution channel for faster commercialisation of existing products of Strides which are already registered in South Africa, it said.
“The acquisition provides an impetus to our ‘In Africa For Africa’ strategy as it fast-tracks Strides presence in the lucrative and high entry barrier South African market. With the acquisition, we are now present in East, West and South Africa, covering all the key markets in sub-Saharan Africa,” said Shashank Sinha, managing director of Strides Shasun.
The current management will stay as a minority partner and will continue to run the business under the supervision of Strides Shasun.
Founded in 2003, Trinity Pharma supplies generic pharmaceutical products to pharmaceutical retailers and provides services relating to regulatory requirements and registration of products.
Earlier this year, Strides Shasun sold its generic pharmaceutical products manufacturing and distribution business in Africa to Africure Pharmaceuticals Ltd for $9.9 million, according to its latest annual report.
In another deal in Africa, the company acquired a 51% stake in Kenyan drug manufacturing and marketing company Universal Corporation Ltd in 2016.
Last month, Strides Shasun sold its branded generics business in India to Eris Lifesciences Ltd for Rs 500 crore ($77 million) in cash.
The company’s revenue from operations stood at Rs 3,483.4 crore while net profit was Rs 445.9 crore in the year through 31 March 2017.