Strides Pharma gains after acquiring multiple generic brands from Sandoz

In a regulatory filing made after market hours yesterday, the company informed that its step- down subsidiary, Strides Pharma International AG (SPIAG) has entered into definitive agreements with Sandoz AG, Switzerland, for the acquisition and in-licensing of a portfolio of branded generic products across Sub Saharan Africa (SSA).

The agreement spans four key markets, which include Western Sahara (covering 10 countries), Ghana, Nigeria, and Kenya.

The branded generics portfolio of Sandoz, as a part of this deal, includes multiple brands across anti-infective, cardiovascular, and dermatology therapeutic segments.

Several of these products individually deliver annual sales exceeding $1 million, reflecting their established brand equity and market demand.

The transaction includes a portfolio comprising products that are being fully acquired by Strides, as well as select products that Strides will continue to market on behalf of Sandoz.

To ensure the uninterrupted availability of these critical brands, Strides will also enter into a manufacturing and supply agreement with Sandoz for their continued production and supply.

With the combined strength of Strides' existing business and the branded portfolio being acquired from Sandoz, Strides is expected to become one of the top five pharmaceutical companies in the SSA region by sales and among the top two players in the representable market.

Strides Pharma further said that the initial consideration for the transaction is $12 million, payable at closing and is expected to be funded through internal accruals. The arrangement also provides for yearly royalty payments to the Sandoz based on a percentage of net sales for the distribution products.

The transaction is expected to be EPS accretive, supported by profitable branded sales, synergy realisation, and improved operating leverage.

The transaction is expected to close by the end of Q2 FY27 (quarter ending 30 September 2026), subject to customary closing conditions, including regulatory and antitrust approvals in applicable jurisdictions.

Strides Pharma Science is a Bengaluru-headquartered global pharmaceutical company focused on regulated and emerging markets, with manufacturing facilities across India, Italy, Kenya and the US, and a presence in over 100 countries.

On a consolidated basis, the company's profit after tax rose 131.14% YoY to Rs 208.12 crore in Q3 FY26 from Rs 90.04 crore a year ago. Revenue increased 3.6% YoY to Rs 1,194.6 crore in Q3 FY26.

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