Strides Pharma Science Limited has announced that its wholly owned subsidiaries have entered into definitive agreements with subsidiaries of Endo International plc to acquire its manufacturing facility at Chestnut Ridge, New York and a basket of ANDAs.

Under the terms of the agreement, Strides will pay around US $24 million for the acquisition. The transaction will be financed by a combination of internal accruals and debt financing and is expected to close in CY2021 subject to customary closing conditions.

The proposed acquisition will further bolster Strides US presence through acquisition of a multi dosage facility in the US and a basket of ANDAs cutting across multiple therapeutic segments. The cumulative addressable market for the acquired portfolio is US $4.7 billion (IQVIA MAT May 2021).

The facility at Chestnut Ridge, New York has an annual capacity of 2 billion units across semi-solids, liquids, nasal sprays along with oral solids. The facility is also registered with the Drug Enforcement Administration (DEA) enabling manufacturing of controlled substances.

Being in the US, the facility will be able to participate in various federal government procurement programs including the Department of Veterans Affairs. The acquisition further strengthens our ability to cater to federal contracts.

The acquired portfolio has 20 commercial products and a basket of dormant ANDA’s which will help fast track our new launch strategy for US markets with 5-6 new product introductions every quarter.

Commenting on the development, Dr. R. Ananthanarayanan, Managing Director & CEO said, “With this acquisition we have doubled our US portfolio with a potential to launch 5-6 new products each quarter going forward. We believe with the combined product portfolio, experienced management team, established frontend and a diversified manufacturing footprint we have created a strong foundation to achieve our previously stated growth ambition for the market. On completion of the transaction, our immediate focus will be on seamless integration of people and the acquired assets onto Strides platform.”