Strides Arcolab expands in biologics, buying 70% stake in Bangalore's Inbiopro

Indian drugmaker Strides Arcolab Limited (BSE: 532531, NSE: STAR) has entered into an agreement to acquire 70% stake in Bangalore-based biotechnology firm Inbiopro Solutions. The acquisition marks Strides’ foray into biologics, strengthening the company’s offering in the specialty segment.

The acquisition gives Strides immediate access to a pipeline of eight products estimated to have global sales of over $28 billion. Commercialization of these products is expected to begin in 2013. The acquisition will entail investment of 650 million rupees ($14 million) over a period of three years to be used for development and commercialization of products.

“Given our intent to be a global sterile powerhouse, this acquisition enhances our specialty portfolio while giving us a leap start of at least three years in the fast growing and complex biopharmaceutical industry,” said Arun Kumar, vice chairman and group chief executive of Strides Arcolab. “This is a significant extension to our oncology domain, providing opportunities for licensing income in the years to come,” he added.