Stock Report

Strides Strengthens its Africa Business with the Acquisition of Multiple Generic Brands from Sandoz

Posted On : 2026-03-17 23:57:15( TIMEZONE : IST )

Strides Pharma Science Limited (Strides) today announced that its step-down subsidiary, Strides Pharma International AG (SPIAG), has entered into definitive agreements with Sandoz AG, Switzerland and its group entities (collectively referred to as "Sandoz") for the acquisition and in-licensing of a portfolio of branded generic products across Sub-Saharan Africa (SSA).

The agreement spans four key markets-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 US$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.

The combination of Strides' established operations and the high-quality branded portfolio from Sandoz is expected to generate strong strategic synergies for the business. The expanded portfolio will enhance Strides' market reach across key SSA markets, aligned with our long-term growth strategy in Africa. The strong brand equity of Sandoz's products is expected to strengthen Strides' therapeutic leadership and improve credibility with prescribers. The transaction also unlocks meaningful cross-selling opportunities as Strides gains access to new therapeutics and can leverage the combined portfolios across a broader network of doctors and pharmacies. Additionally, the acquisition opens new commercial channels through deeper access to prescriber bases, pharmacies, clinics, and healthcare institutions where Sandoz products already have strong presence. These synergies, combined with operational efficiencies from a strengthened commercial and supply chain platform, are expected to drive superior market coverage and long-term value creation.

The initial consideration for the transaction is US$ 12 million, payable at closing and is expected to be funded through internal accruals. 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 30th September 2026), subject to customary closing conditions, including regulatory and antitrust approvals in applicable jurisdictions.

Commenting on the milestone, Aditya Kumar, Executive Director, Business Development, said, "This acquisition represents a significant milestone for our 'in Africa for Africa' strategy. Africa is one of the fastest-growing geographies for us, and this transaction more than doubles our presence in the region, giving us the size and scale to accelerate our momentum, deepen market penetration, and further consolidate our leadership across key therapeutic areas. This investment is aligned with our long-term strategy, under which Ex-US markets are expected to evolve to mirror the scale of our US business within a couple of years. The combined portfolio strengthens our market position by enhancing our overall visibility in retail pharmacy and substantially increasing the depth and breadth of our offerings across the hospital network. We look forward to delivering enhanced value to patients and healthcare ecosystems across Sub-Saharan Africa."

Shares of Strides Pharma Science Limited was last trading in BSE at Rs. 876.25 as compared to the previous close of Rs. 890.95. The total number of shares traded during the day was 4701 in over 274 trades.

The stock hit an intraday high of Rs. 886.65 and intraday low of 871.95. The net turnover during the day was Rs. 4120550.00.