Strides acquires strategic stake in Fairmed Healthcare AG

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Bengaluru based Strides Pharma Science Limited (Strides) has announced that its step down subsidiary Strides Pharma Global Pte Ltd (SPG) has acquired a majority stake in Fairmed Healthcare AG (Fairmed), a Switzerland based company with a portfolio of high‐quality generic products encompassing prescription and over‐the‐counter drugs across several therapeutic segments.

Strategic Rationale

• 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 maximization across multiple markets, leveraging its established regulated market portfolio. This market contributed 26%  to  FY19  revenues,  growing 30% +  YoY  primarily  on  portfolio  expansion  and enhanced marketing  footprint across key regulated markets outside of the US.
• 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.
• Strides’ vast international product portfolio and Fairmed’s market access in the DACH region is a highly complementary combination to pivot an extensive growth in the coming years
• Fairmed had a net sales of  Euro 5.8 million in CY 18 driven mainly by its frontend 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. 

Transaction terms and structure  

Under the terms of the agreement, SPG will hold 70% of the issued capital of Fairmed. Strides has infused CHF 2.2 Million into the entity in lieu of the equity stake.