According to reports from CNBC TV18, Strides Pharma Science Ltd has entered into definitive agreements through its step-down subsidiary, Strides Pharma International AG (SPIAG), to acquire and in-license multiple branded generic products from Sandoz AG across the Sub-Saharan Africa region. The transaction involves Sandoz AG, Switzerland and its group entities, with Strides Pharma Global Pte Ltd, Singapore, acting as corporate guarantor on behalf of SPIAG. As reported by Strides Pharma, this strategic acquisition is designed to position the company as one of the top five pharmaceutical players in the Sub-Saharan Africa region by sales and among the top two players in the representable market.
As reported by CNBC TV18, the upfront consideration for the transaction is $12 million, payable at closing. The acquired and in-licensed portfolio comprises established brands in anti-infective, cardiovascular and dermatology segments, with several products recording annual sales exceeding $1 million. The agreement spans four key markets - Western Sahara covering 10 countries, Ghana, Nigeria, and Kenya, where Strides has an existing presence. The transaction includes both outright acquisition of certain brands and in-licensing of others, with Strides also entering into a Manufacturing and Supply Agreement with Sandoz for continued production and supply of select products.
According to the report, the transaction is expected to be EPS-accretive, supported by profitable branded sales, synergy realization, and improved operating leverage. The transaction is subject to customary closing conditions, including antitrust filings in relevant jurisdictions, and is expected to close by the end of Q2FY27 (quarter ending September 30, 2026). Strides will make royalty payments to Sandoz based on a percentage of net sales of distribution products, with the initial consideration expected to be funded through internal accruals.
As reported by CNBC TV18, shares of Strides Pharma Science Ltd ended at ₹876.55, down by ₹14.40, or 1.62%, on the BSE today, March 17. The company stated that the transaction with Sandoz does not qualify as a related party transaction, with inter-company arrangements between SPIAG and SPG treated at arm's length. The acquisition opens new commercial channels through deeper access to prescriber bases, pharmacies, clinics, and healthcare institutions where Sandoz products already have strong presence, with synergies expected to drive superior market coverage and long-term value creation.
