Mumbai & Bangalore, India: September 19, 2015 - Sun Pharmaceutical Industries Ltd. (Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715, Sun Pharma) and Strides Arcolab Ltd. (Reuters: STAR.NS, Bloomberg: STAR.IN, NSE: STAR, BSE: 532531, Strides) today announced that they have entered into a definitive agreement related to erstwhile Ranbaxy's 'Solus' and 'Solus Care' divisions operating in the central nervous system (CNS) segment in India.
The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs. 1,650 million. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs. 920 million in sales. During the divestment process, Sun Pharma was cognizant that the interests of its employees working in Solus and Solus Care divisions were not compromised.
Commenting on the transaction, Abhay Gandhi, CEO – India Business, Sun Pharma said, "The agreement with Strides is part of our strategy to firmly consolidate our CNS business in India. Post successful completion of Ranbaxy's merger we had an opportunity to assess the entire portfolio of our India Business. We have evaluated each and every therapy segment that we are present in and how these businesses can grow going forward. Based on this evaluation, we firmly believe that the potential of Solus and Solus Care divisions can be greatly enhanced with the focus that Strides will put in growing them. The divestment will help these divisions, its customers and the team."
Subroto Banerjee, President – Brands, India of Strides said, "The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India. The product portfolio of Strides and these divisions will strategically complement each other very well. The specialty nature of CNS products makes brand equity and customer relationships, key determinants of success. The Solus and Solus Care divisions readily qualify for both these parameters. We look forward to welcoming the employees of these divisions to the Strides family and working together with the team members in future growth path of Strides."
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions. All other terms and conditions of the transaction are confidential.