Strides to acquire 100% stake in Vensun Pharmaceuticals, Inc. to bolster its US marketed portfolio & front-end presence

Deepthi | Myequity news | Date : 29-01-2019 14:50:00 IST

Strides Pharma, Inc has today entered into an arrangement to acquire 100% stake in Vensun Pharmaceuticals, Inc.(Vensun), a US-based Generics Company.

Vensun was founded in 2011 with an asset-light partner-driven business model to develop products for the US generics markets. It entered into a partnership with the erstwhile Shasun Pharmaceuticals Limited for a range of ‘difficult to develop’ products on a 50:50 profit share arrangement.

Vensun has a strategic focus on niche ANDAs with a portfolio of 16 commercialized ANDAs, four of which are partnered with Strides and constitute a significant part of Vensun’s current revenues of US$ ~17 Mn. Its portfolio also comprises additional 13 filed ANDAs which includes Strides Competitive Generic Therapy (CGT) designated product with US$ 400 Mn market opportunity. Vensun also has a development pipeline with two other partners for ten products.

Strategic Rationale

Strides to get unencumbered access to its partnered IP with Vensun including the CGT designated product. If Strides is the first approved applicant, the product could be eligible for a potential 180-day CGT exclusivity which functions equivalently to the Patent Challenge exclusivity for ANDAs.

Strides existing ANDA portfolio of 86 filings with 31 files pending approval will have additional 12 commercialised ANDAs and 12 files pending approvals from Vensun Consideration

Base consideration of US$ 18 mn for a 100% stake in Vensun and an effective 70% economics on the Strides Partnered portfolio. US$ 4 mn payable upfront on the closing of the transaction. Strides to assume and guarantee US$ 14 mn of Vensun debt

Deferred consideration up to US$ 75 mn which represents 30% of the economics for Vensun shareholders with respect to the Strides partnered portfolio to be paid over a period of six years.

Kegler Brown Hill & Ritter acted as legal counsel to Strides. SVB Leerink LLC acted as financial advisor and Goodwin Procter LLP acted as legal counsel to Vensun.

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.

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