Strides Arcolab to buy Italian Diaspa''s drug unit

Mumbai: Strides Arcolab Ltd would acquire the fermentation unit of Italy''s Diaspa S.p.A near Milan.

Strides said it has agreed with the shareholders of Disapa to acquire their fermentation assets near Milan and that the acquisition would be carried out through a special purpose vehicle incorporated in Italy, which will be owned by Strides Arcolab International Ltd (SAIL). The acquisition is subject to closing conditions and necessary approvals.

No further details of the transaction are being disclosed until final closure.

The plant had approvals of US Food and Drug Administration and the European Union, Strides said in a statement.

"The acquisition on closure will give Strides immediate access to a USFDA and EU approved facility with strong history of technology and fermentation skills. A significant part of Strides dosage form businesses are based on fermentation active pharmaceutical ingredients (APIs). Diaspa delivers the integration needs for Strides in this crucial space. We further intend to harness the existing customer base and product capabilities of Diaspa and aim to become a leading player in the fermentation space. We are also delighted with the strong technology and management bandwidth Diaspa brings along with this acquisition," Arun Kumar, vice chairman and managing director of Strides Arcolab Group, said.

The Strides Arcolab stock was trading at Rs336, up Rs17.60 or 5.53 per centThe stock hit an intraday high of Rs346 and a low of Rs332.05.