As part of its strategy to gain entry into regulated markets of Europe, North America, South Africa, Australia, New Zealand and Japan, Strides Arcolab Ltd, a Bangalore-based pharma company, has entered into a string of joint ventures and alliances.
The company has, as a result, strong backward and forward linkages. It has long-term raw material supply contracts with key customers. Also it has a smooth cash flow with the realisation period of less than 90 days, said a senior company official.
In its latest initiative, Strides Arcolab on Wednesday announced that its board of directors has approved the proposal for acquisition of up to 60 per cent stake in Biopharma, a Venezuelan pharmaceutical and marketing company.
The proposed acquisition is estimated at $1 million and subject to due diligence. Post due diligence, the investment will be made by Strides through Strides Latina, Uruguay, the investment vehicle of the company for its Latin American operations.
Earlier, the company had entered into joint ventures and alliances to becoming a significant supplier of generic products. Over the past year the company has tied up with Sorm, Japan, and Aspen, South Africa and Australia, for the supply of generic products. The company also has relationships with Sandoz and GDF, South Africa for their anti-TB programmes.
Through Sorm, Stride supplies the Japanese market with a range of OTC and healthfood supplements. Through Aspen, the company has a strategic alliance for the development and supply of a range of pharmaceutical and nutraceuticals products.
Stada Pharmaceuticals of the US recently entered into a development and supply agreement with Strides for a prescription generic drug.
In December, the company entered into a distribution agreement with Mayne Pharma (USA) Inc, to develop and manufacture a range of six anti-infective products and six specialised injectible, non-cytoxic products.
The largest Australian public company Sigma Pharmaceuticals has a strategic alliance as manufacturing partner for identified generic and branded products.
With Novartis, Strides has a supplier agreement for their South African, Australian and Indian operations.
With Perrigo of USA and UK, the largest store brand manufacturer in the US of OTC and nutritional products, Strides manufactures a range of pharmaceutical products and health supplements.