Strides acquires 70 per cent stake in Swiss firm Fairmed Healthcare
Acquisition strengthens Strides’ access to other regulated market business providing company with a strong foothold in continental Europe
Bangalore-based pharmaceutical giant Strides Pharma Science (Strides) has acquired 70 per cent stake in Switzerland based Fairmed Healthcare for CHF 2.2 million.
As per the company’s press release, its step down subsidiary Strides Pharma Global Pte Ltd (SPG) has acquired a majority stake in Fairmed Healthcare AG (Fairmed). Fairmed has a portfolio of high-quality generic products encompassing prescription and over-the-counter drugs across several therapeutic segments.
Under the terms of the agreement, SPG will hold 70 per cent of the issued capital of Fairmed. Strides has infused CHF 2.2 Million into the entity in lieu of the equity stake.
Fairmed has built a strong franchise of supplying high-quality Rx and OTC products in key European markets and the acquisition will augment Strides’ footprint in continental Europe with a direct presence in the German speaking markets of Germany, Austria and Switzerland collectively called as DACH region. Fairmed had a net sales of Euro 5.8 million in CY 18 driven mainly by its fronted presence and a portfolio of 30+ products.
The business will incrementally have access to Strides’ already approved product portfolio for the markets Fairmed operates in with supplies from several of its EU approved facilities.
Strides’ vast international product portfolio and Fairmed’s market access in the DACH region comprises the countries Austria, Germany, and Switzerland it is a highly complementary combination to pivot an extensive growth in the coming years. The other regulated market for Strides comprises of its businesses in UK, EU, South Africa, Canada and the supplies to Australia. It is the fastest growing market for Strides led by a hybrid R&D strategy based on portfolio maximisation across multiple markets, leveraging its established regulated market portfolio. This market contributed 26 per cent to FY19 revenues, growing 30 per cent+ YoY primarily on portfolio expansion and enhanced marketing footprint across key regulated markets outside of the US.