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 Group CEO 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.
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Aspen Strides Two
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.
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Aspen Strides Three
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.
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
www.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
Shauneed Beukes
Tel: +27 12 661 8467 :
Cell: 082 389 8900
Fax: +27 088 12 661 8467
