Johannesburg South Africa, and Bangalore, India: Aspen Pharmacare (Aspen), Africa’s largest pharmaceutical manufacturer and the largest generics manufacturer in the southern hemisphere, has entered into a series of transactions with Bangalore-based Strides Arcolab Limited (Strides), one of India’s largest exporters of pharmaceutical products. The transactions comprise: the acquisition by Aspen of 50% of Strides’ Latin American operations (“Strides Latina”). Strides Latina is an operation owned by Strides Arcolab Limited mainly operating in Brazil as Cellofarm and in Mexico as Solara, with a marketing and trading operation in Venezuela as Sumifarma; the formation of a 50% joint venture with Strides to develop, manufacture and commercialise a range of oncology products on a global basis through Powercliff Limited (“Powercliff”) and Onco Therapies Limited (“Onco”); the acquisition by Strides of a 51% interest in Co-pharma Limited (“Co-pharma”), Aspen’s 100% owned United Kingdom-based subsidiary; and the acquisition by Strides of 80% of the equity in Formula Naturelle (Pty) Ltd which will, in turn, own a basket of nutraceutical products currently marketed by Aspen Pharmacare in South Africa. Arun Kumar, Strides’ Vice Chairman and Managing Director said “we are delighted to enhance the already rewarding partnership with Aspen and to broaden the strategic relationship into a global partnership through the four transactions being announced today. Aspen has been Strides’ first key partner and I am particularly delighted that the partnership has grown, based on strong fundamentals of capability and trust. ——————————————————————————– It has always been a delight working with Aspen and with this new alliance, and I am extremely confident that we will create significant new value for both companies. Having worked with Stephen Saad, Gus Attridge, Aspen’s Deputy Group CE and their management team, this strategic conclusion will be ground breaking in many respects and I look forward to working closely with them to create a solid regional Pharma company in Latin America. The opportunity to create a leading oncolytics operation in a niche and difficult domain, bodes well for the Oncolytics JV. Stephen Saad, Aspen Group Chief Executive said “we have worked closely with Strides since 2003. The close collaboration of the past 4 years has resulted in Strides becoming a significant manufacturing and development partner to Aspen in both Africa and Australasia. Today, I am happy to announce that we will forge an even closer partnership. This partnership will be extended to Latin America, Global Oncolytics, Co-pharma in the UK, and Nutraceuticals in South Africa. It has always been a part of the Aspen strategy to enter the Latin American pharmaceutical market. However, until now, we had been unable to find a platform company through which to enter these markets. We were fortunate enough that, through Strides, we have a partner who has had experience and success in this market. Cellofarm is the number two player in the Brazilian hospital market. Furthermore, it has sufficient presence to begin the process of leveraging Aspen’s extensive product portfolio into these markets. The addition of Aspen’s existing intellectual property (IP), Aspen’s front end marketing capabilities, and the combined pipelines of Strides will give impetus to Cellofarm in these branded generic markets. These markets are challenging and have high barriers to entry and, given this launch pad, they should prove key markets into the future for leveraging the significant IP that already vests with Aspen, as well as roll-out of the local manufacturing facilities. Strides and Aspen have a shared vision regarding sterile manufacture and the extension to Oncolytics will complete the basket to the existing capabilities that we are developing around hormonal and other sterile capabilities. ——————————————————————————– We are excited by the opportunity these initiatives offer our organisations. I would also like to thank Arun Kumar, the Vice Chairman and Managing Director of Strides and his team for their efforts in achieving the above. Aspen has been privileged to have enjoyed this close partnership with Strides and from this we have drawn much confidence as we take this partnership to the next level. These investments in Latin America and Oncolytics are important strategic steps in the internationalisation of Aspen which I expect should be value enhancing for Aspen’s shareholders in the medium term. Furthermore, we have sold a majority share in Co-pharma and our South African Nutraceuticals business. We believe the Strides business model is better suited to creating value in these businesses.” The completion of the transactions is subject to the signing of legal agreements and is subject to the Exchange Control approval of the South African Reserve Bank and the approval of the Reserve Bank of India and Strides’ bankers and other financial institutions, as appropriate. Issued by: Shauneen Beukes, Shauneen Beukes Communications Tel: +27 12 661 8467 : Cell: 082 389 8900 Fax: +27 088 12 661 8467 On Behalf Of: Stephen Saad, Aspen Group CE Tel: +27 31 580-8602 Fax: +27 31 580 8640 Gus Attridge, Aspen Deputy Group CE Tel: +27 31 5808604 Fax: +27 31 580 8640 aspenpharma.com Arun Kumar, Strides Vice Chairman & MD or Ravi Seth, Strides Group CFO Tel: +91 80 6658 0110 Fax: +91 80 6658 0200 www.stridesarco.com Harini Iyengar, Adafctors PR, Bangalore Tel: +91 80 4113 32062/64 Fax: +91 80 4113 3059 ——————————————————————————– The Transactions Details of each of the transactions outlined above are as follows: a) Aspen will acquire a 50% interest Strides Latina via the acquisition of shares from Strides for US$ 58.5 million and the subscription for shares in Strides-Aspen Latina (owned 100% by Strides) for US$94 million. This consideration is subject to adjustment should the earnings for the year following the effective date not reach certain levels. Following the first year after the effective date, Aspen will have an option to buy, and Strides to sell, Strides remaining 50% interest in Strides Latina. b) Aspen and Strides will enter into a 50% joint venture to develop, manufacture and commercialise oncology products. Aspen will purchase 50% of the issued share capital of Powercliff from Strides for US$25.75 million and will subscribe for 49% of the share capital of Onco and… Continue reading Aspen and Strides Enter Into Broad and Strategic Partnership
