Strides acquires strategic stake in Fairmed Healthcare AG in Europe

Acquisition further strengthens Strides’ fastest growing other regulated market business providing company with a strong foothold in continental Europe

Bangalore, India, September 11, 2019 ‐ Strides Pharma Science Limited (Strides) today announced that its step down subsidiary Strides Pharma Global Pte Ltd(SPG) has acquired a majority stake in Fairmed Healthcare AG(Fairmed), a Switzerland based company with a portfolio of high‐quality generic products encompassing prescription and over‐the‐counter drugs across several therapeutic segments.

Strategic Rationale

  • The Other Regulated market for Strides comprises of its businesses in UK, EU, South Africa, Canada and the supplies to Australia.
  • It is the fastest growing market for Strides led by a hybrid R&D strategy based on portfolio maximization across multiple markets, leveraging its established regulated market portfolio. This market contributed 26% to FY19 revenues, growing 30%+ YoY primarily on portfolio expansion and enhanced marketing footprint across key regulated markets outside of the US.
  • Fairmed has built a strong franchise of supplying high‐quality Rx and OTC products in key European markets and the acquisition will augment Strides’ footprint in continental Europe with a direct presence in the German speaking markets of Germany, Austria and Switzerland collectively called as DACH region.
  • Strides’ vast international product portfolio and Fairmed’s market access in the DACH region is a highly complementary combination to pivot an extensive growth in the coming years
  • Fairmed had a net sales of Euro 5.8 million in CY 18 driven mainly by its frontend presence and a portfolio of 30+ products.
  • The business will incrementally have access to Strides’ already approved product portfolio for the markets Fairmed operates in with supplies from several of its EU approved facilities.

Transaction terms and structure

Under the terms of the agreement, SPG will hold 70% of the issued capital of Fairmed. Strides has infused CHF 2.2 Million into the entity in lieu of the equity stake.

About Strides

Strides, listed on the BSE Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India. The Company mainly operates in the regulated markets and has an “in Africa for Africa” strategy along with an institutional business to service donor‐funded markets. The Company’s global manufacturing sites are located in India‐ Bangalore (two sites), Pondicherry, and Chennai, Singapore, Italy‐ Milan, Kenya‐ Nairobi and United States‐Florida. The Company focusses on “difficult to manufacture” products that are sold in over 100 countries. Additional information is available at the Company’s website at www.strides.com

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