<p>Pharmaceutical manufacturer, Strides Arcolab and Shasun Pharmaceuticals Limited on Monday announced that both companies have approved a merger in the stock split ratio of 5:16 to create a company which will be worth Rs 2,500 crore. <br /><br /></p>.<p>Pursuant to the agreement between both companies, each equity shareholder of Shasun will be entitled to receive five equity shares of Strides in lieu of 16 equity shares held in Shasun. <br /><br />The company said that the strategic rationale of the merger is that it significantly enhances the portfolio of finished dosages in niche and complex domains with a pipeline of over 100 products and accelerates product filings with a combined R&D strength of over 400 personnel. <br /><br />Commenting on the merger, Arun Kumar, Strides, founder and Group CEO stated “The proposed combination with Shasun should accelerate our strategy and growth prospects by creating a larger scale, fully integrated, Indian pharma company.”<br /><br />The agreement allows the merged entity to leverage Shasun’s API manufacturing capacities and shift the focus towards niche APIs aligned with finished dosages portfolio and pipeline. <br /><br />GMS Holdings to invest <br /><br />Strides Acrolab on Monday announced that GMS Holdings has entered into an agreement with the firm to invest $21.90 million for 25.1 per cent stake in its biotech arm Stelis Biopharma. <br /><br />The company said in a filing to the BSE that the transaction is expected to close in the fourth quarter of 2014.<br /><br />The Bangalore-based company said it has invested $16.9 million in Stelis so far.The two companies have agreed to put in a total amount of $61.9 million taking total equity investment in the unit to $ 78.8 million. <br /><br />The agreement stipulates that GMS will invest $8.5 million for a 25.1 per cent stake in Stelis on closing, at a premium of 50 per cent of the current equity investment by Strides. <br /><br />The company said the further equity infusion of $40 million by Strides and $13.40 million by GMS to be in tranches based on project and product development needs over a period of 2 years, in proportion to their ownership at par.<br /><br />Commenting on the transaction, Chief Corporate Development Officer of Strides and Head – Biotech division, Joe Thomas, stated, “We are extremely pleased to have GMS Holdings as our strategic partner for the emerging biotech business. GMS Holdings has a track record of having partnered in successful businesses, with a strong presence in the MENA region.”</p>
<p>Pharmaceutical manufacturer, Strides Arcolab and Shasun Pharmaceuticals Limited on Monday announced that both companies have approved a merger in the stock split ratio of 5:16 to create a company which will be worth Rs 2,500 crore. <br /><br /></p>.<p>Pursuant to the agreement between both companies, each equity shareholder of Shasun will be entitled to receive five equity shares of Strides in lieu of 16 equity shares held in Shasun. <br /><br />The company said that the strategic rationale of the merger is that it significantly enhances the portfolio of finished dosages in niche and complex domains with a pipeline of over 100 products and accelerates product filings with a combined R&D strength of over 400 personnel. <br /><br />Commenting on the merger, Arun Kumar, Strides, founder and Group CEO stated “The proposed combination with Shasun should accelerate our strategy and growth prospects by creating a larger scale, fully integrated, Indian pharma company.”<br /><br />The agreement allows the merged entity to leverage Shasun’s API manufacturing capacities and shift the focus towards niche APIs aligned with finished dosages portfolio and pipeline. <br /><br />GMS Holdings to invest <br /><br />Strides Acrolab on Monday announced that GMS Holdings has entered into an agreement with the firm to invest $21.90 million for 25.1 per cent stake in its biotech arm Stelis Biopharma. <br /><br />The company said in a filing to the BSE that the transaction is expected to close in the fourth quarter of 2014.<br /><br />The Bangalore-based company said it has invested $16.9 million in Stelis so far.The two companies have agreed to put in a total amount of $61.9 million taking total equity investment in the unit to $ 78.8 million. <br /><br />The agreement stipulates that GMS will invest $8.5 million for a 25.1 per cent stake in Stelis on closing, at a premium of 50 per cent of the current equity investment by Strides. <br /><br />The company said the further equity infusion of $40 million by Strides and $13.40 million by GMS to be in tranches based on project and product development needs over a period of 2 years, in proportion to their ownership at par.<br /><br />Commenting on the transaction, Chief Corporate Development Officer of Strides and Head – Biotech division, Joe Thomas, stated, “We are extremely pleased to have GMS Holdings as our strategic partner for the emerging biotech business. GMS Holdings has a track record of having partnered in successful businesses, with a strong presence in the MENA region.”</p>
