Strides Arcolab, Akorn to sell US JV products portfolio to Pfizer for $63.2 million
30 Dec 2010
Akorn-Strides LLC, a joint venture between Bangalore-based drug firm, Strides Arcolab and Akorn Inc of the US today agreed to sell 16 approved Abbreviated New Drug Approvals (ANDAs) and 6 filed ANDAs to pharmaceutical giant Pfizer for $63.2 million in cash.
Illinois-based Akorn will receive $35 million from the sale, while Strides will not only get $28.2 million as its share, but will also enter into a supply agreement with Pfizer for manufacture and supply of these products.
Akorn-Strides will however, continue to manufacture and distribute a limited number of the approved products until 30 April 2011, said Strides in a statement.
''We are delighted that the divestiture of these products has created significant value for the two joint venture partners. This transaction will further strengthen the strategic partnership between Strides and Pfizer,'' said Arun Kumar, executive vice chairman and group CEO of Strides.
Akron-Strides, was set up as a 50:50: joint venture in 2004 to develop and market sterile injectable products for the US market.
Strides Arcolab, listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited, is a global pharmaceutical company that develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables.