• 15 Feb 2022
• Admin
• News Article

Strides Pharma On AcquiredEndo Portfolio For Turnaround Of ItsUs Business

Strides Announced Acquisition Of An Endo Manufacturing Facility In The Us Along With A Basket Of Andas For $24.9 Million. The Transaction Achieved Closure On October 20,2021. Strides Pharma Science Said It Is Banking On The Acquired Generic Portfolio From Us Drug Maker Endo For A Turnaround Of The Company'S Performance. On August 6, 2021, Strides Announced Acquisition Of An Endo Manufacturing Facility In The Us Along With A Basket Of Andas For $24.9 Million. The Transaction Achieved Closure On Strides Has Been Struggling With Pricing Pressure, Supply Chain Disruption, High Raw Material Prices And Lack Of Meaningful Approvals, Hurting Its Business. The Company On Thursday Reported A Net Loss Of Rs 127 Crore In The Third Quarter Ended December 2021. While The Losses Have Narrowed On A Quarter On Quarter (Qoq) Basis From Rs 168 Crore In Q2Fy22, And Revenues Rose By 8% Rose On Qoq Basis To Rs 797 Crore. Us Business Alone Contributes About 36% Of Revenues Of Strides At Rs 283 Crore ($38 Million)In Q3Fy22, Down 27% Yoy. However On A Qoq Basis The Us Sales Grew 13%. At Its Peak, Stride'S Us Business Was Hitting $58 Million On A Quarterly Basis. This Is Where It Expects The Acquired Endo Portfolio To Help. The Acquisition More Than Doubles The Approved Anda Basket For Strides Including 20 Commercial Products That Includes Chronic Products And Controlled Substances. R Ananthanarayanan, Md & Ceo Of Strides In An Interview To Et Said The Worst For The Company In The Us Market Is Getting Behind, And The Full Impact Of The Endo Deal Will Be Seen From The Current Quarter. "The Green Shoots Are Coming Up, The Business Has Started Seeing Growth, We Have Been Able To Retain Market Share And Seeing New Contracts Being Signed," Ananthanarayanan Said. Ananthanarayanan Said The Chestnut Ridge Facility Which Came With The Acquisition Of Endo Portfolio Has Successfully Completed A Usfda Inspection With 2 Minor Observations Ananthnarayanan Said The Full Sales Benefit Of The Acquired Portfolio Will Be Seen From The Fourth Quarter. "We Are Also On Track To Launching Products As We Indicated From Q1Fy23 Onwards," Ananthnarayanan Said. The Company Plans To Launch 4-5 Products On A Quarterly Basis. Ananthnarayanan Said The Acquisition Business Is Expected To Generate About $12 Million - $14 Million Sales On A Quarterly Basis. Ananthanaryanan Said The Fourth Quarter Could See A Rollover Of High Cost Raw Materials And Inventory. Narayanan Said The Company Is Confident Of Achieving $250 Us Sales In Fy23.