Strides Arcolab acquires SA firm Aspen's stake in two joint ventures

Strides Arcolab has acquired the stakes owned by South African generics drug firm Aspen Pharmacare in cancer drug making joint ventures - Onco Therapies in India and Onco Laboratories in Cyprus - for $117 million (Rs531 crore).

The company said the deal's payment terms were based on certain future milestones and the last date for settlement of all outstanding amounts had been set at 30 April 2011.

The deal also allows Stride to license existing and future oncology products to Aspen Pharmacare, an Aspen Group company, in certain locations. ( See: Strides Arcolab to delist Aussie subsidiary Ascent Pharmahealth by acquiring publicly held shares)

Aspen struck an association with Strides Arcolab in 2003, and has since entered into a series of transactions with the Bangalore-based company.

"We are delighted to strengthen our existing partnership with Aspen by entering into a licensing agreement in territories where Aspen has established distribution," Strides Arcolab vice-chairman and group chief executive Arun Kumar said in a statement.

Meanwhile, Strides Arcolab, which follows a January-to-December financial year, has revised its guidance for 2010, saying its consolidated revenue was expected to grow 35-37 per cent to Rs1,775-1,825 crore.