Strides Arcolab to acquire Aspen's Brazilian facility for $75 million

Indian drugmaker Strides Arcolab said today that it has entered into an agreement with South Africa-based Aspen Pharmacare, South Africa's largest pharmaceutical company, to acquire the latter's facility in Brazil for $75 million, subject to regulatory approval.

In an effort to focus on injectable business, the company has entered into an understanding with Aspen to acquire its facility in Campos, Brazil with related products, Strides said in a filing to the Bombay Stock Exchange. The buying of Campos unit is part of a well integrated strategy for Strides with licensing and supply agreement with global partners already in place, it added. The facility manufactures penems and penicillin antibiotics and penems is a key domain for Strides, the firm stated said, and is likely to generate annual income of $40 million for the Indian firm. Strides already has a joint venture with Aspen in India.

"Penems and penicillins form an important part of Strides speciality injectable business and licensing agreement for penems have been concluded with various customers on a worldwide basis making the acquisition an important part of growing our speciality injectable business," said Strides' vice chairman and chief executive, Arun Kumar.