Strides Arcolab acquires Raricap and Indian branded generic business of Bafna Pharma

In a second acquisition this month, India’s Strides Arcolab (BSE: 532531) has entered into an agreement with Bafna Pharmaceuticals to acquire majority (74%) stake of its India Branded Generics Business for a cash consideration of 481 million rupees (about $8 million).

The transaction is expected to close by end of September 2014 and is subject to customary closing conditions and statutory approvals. Shares of Strides Arcolab, which has just made strategic investments in Oncobiologics, a privately held New Jersey, USA, biopharmaceutical firm, were up 2.34% at 669.50 rupees.

Raricap, the flagship brand of Bafna, is the eighth largest in oral hematinic segment in India with eight SKU's in oral an liquid forms with an annual revenue of 200 million rupees. Raricap was acquired by Bafna from US health care giant Johnson & Johnson (NYSE: JNJ) in 2011 and has grown at CAGR of ~64% in last three years.