Strides acquires strategic stake in Fairmed Healthcare AG in Europe

Strides acquires strategic stake in Fairmed Healthcare AG in Europe

Strides Pharma Science Limited (Strides) today 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.

Strides Pharma Global Pte. Ltd (SPG) is the international headquarters for Strides Pharma Science Limited, which is a B2C focussed global pharma company that mainly operates in the regulated markets of the US, Australia, Europe, and Canada.

As a group, Strides operates in niche domains with its core competence to develop and manufacture a wide range of technically complex pharmaceutical products. This apart, a consistent commitment to quality and compliance drives all its businesses and gives a significant competitive advantage in a rapidly evolving pharmaceutical landscape. Strides’s business is supported by a team of 2500 people across seven global manufacturing sites, five of which are USFDA approved. It also has an integrated R&D Centre with filing capabilities for the global market.

SPG is principally focussed on expanding the regulated market business for the group through its state of the art manufacturing facility in Singapore and best in class infrastructure. It is engaged in the exclusive supplies to the markets of Australia, US, UK and several markets in the EU territory. SPG’s manufacturing facility in Tuas is highly automated and has an annual capacity of 1.4 Billion tablets & capsules, The site has a built-up area of 273,683 square feet and is approved by HSA Singapore, USFDA, TGA Australia.