Strides to convert its 50:50 JV with Vivimed to 100% ownership, another step to fast-track its resurgent US Strategy

Deepthi | Myequity news | Date : 29-01-2019 15:40:00 IST

Strides Pharma Science Limited (Strides) today announced that the Board of Directors of Strides and its step down subsidiary Strides Pharma Global Pte Limited,Singapore have approved to convert their 50:50 JVs with Vivimed to 100% ownership. Consequently, Strides will acquire balance 50% stake in Vivimed Life Sciences Private Limited, India and its step down subsidiary,Strides Pharma Global Pte, Singapore will acquire the balance 50% stake in Strides Vivimed Pte Ltd, Singapore to own and operate the erstwhile joint venture companies fully.

In May 2017, Strides entered into an arrangement with Vivimed Labs to set up two Joint Ventures Companies (JVC) as under:

Vivimed Life Sciences Private Limited, India- A 50:50 JVC to own the USFDA approved formulations facility at Alathur, Chennai.

Strides Vivimed Pte Ltd, Singapore- A 50:50 JVC in Singapore entered into through Strides’s subsidiary Strides Pharma Global Pte, Singapore to own specific approved ANDAs and product pipeline.

Strategic Rationale


Vivimed’s portfolio of 10 approved ANDAs was earlier marketed by third parties, as part of the transaction, the portfolio will now revert to Strides to potentially add an annualised revenue of US$ 25 mn starting from FY20.


The USFDA approved Alathur facility with a capacity of 1.5 billion oral solids will support better utilisation of our facilities to service our increased demand in the fast-growing regulated markets business Consideration

Strides to acquire the remaining 50% stake in the JVCs for an aggregate consideration of ₹750 mn which retains the entry valuation of ₹1,500 mn for the JVCs.

About Strides:

Strides, is a global pharmaceutical Company headquartered in Bangalore, India. The Company mainly operates in the regulated markets and has an “in Africa for Africa” strategy along with an institutional business to service donor-funded markets. The Company’s global manufacturing sites are located in India- Bangalore (two sites), Pondicherry, and Chennai, Singapore, Italy- Milan, and Kenya- Nairobi. The Company focusses on “difficult to manufacture” products that are sold in over 100 countries. About Strides

Strides, is a global pharmaceutical Company headquartered in Bangalore, India. The Company mainly operates in the regulated markets and has an ‘in Africa for Africa’ strategy along with an institutional business to service donor-funded markets. The Company’s global manufacturing sites are located in India- Bangalore (two sites), Pondicherry, and Chennai, Singapore, Italy- Milan, and Kenya- Nairobi. The Company focusses on ‘difficult to manufacture’ products that are sold in over 100 countries.


More from Myequity