Indian pharma company Strides Arcolab has acquired Aspen business in Australia and plans to run the business as Arrow Pharmaceuticals, bringing back a previous name in the Australian generics market.
The new Arrow Pharmaceuticals business will include about 140 generic prescription drugs as well as an extensive range of non-prescription pharmacy products.
The business and assets being acquired from Aspen have a current prescription market share that will rank Strides and its group entities as one of the top three generics suppliers in the country, and in the top 10 pharmaceutical companies in the Australian market.
Strides is not new to the Australian market: its previous business in Australian generics was Ascent Pharmahealth Ltd, sold to Actavis in 2012 after a successful five-year investment and growth strategy.
Arrow Pharmaceuticals is set to be led by Dennis Bastas, the previous founder and CEO of Ascent Pharmahealth Ltd.
“The Australian generic pharmaceutical market has always been very successful for Strides,” says Arun Kumar, founder and group CEO of Strides Arcolab.
“The Aspen Australian generic pharmaceutical assets are a valuable and unique platform for Strides to rebuild its business in Australia.
“Strong local management, a market leading product portfolio supported by our in-house cost effective manufacturing, will be the key ingredients of our strategy for Australia.”
The acquired products had sales of approximately AUS$120 million in the past financial year (to June 2014) with an EBITDA margin of approximately 31%.
The consideration for the acquisitions will be approximately AUS$380 million.
The acquisition of the business will include access to the product pipeline that was under development by Aspen and includes a number of major product launches in the next six months.