Strides Arcolab acquires 17.7-per cent stake in Genepharm Australasia

08 February 2008

Integrated manufacturer and exporter of finished pharmaceutical dosage forms, Strides Arcolabs has acquired a 17.7-per cent stake in the fourth largest Australian pharmaceutical company Genepharm Australasia, taking its stake in the ASX-listed company to 19.8 per cent.

Strides acquired the stake from a group of shareholders based in Cyprus and associated with Genepharm's largest shareholder, Genepharm Asia Pacific Enterprises Ltd.

Strides will vend its Australian and Asian business under Genepharm in exchange for issue of shares in Genepharm, subject to shareholder approval. Asia and Australia are key focus markets for Strides and are amongst the faster growing regions for the company.

The vending in of the Strides Asian business under the Genepharm Transaction will
result in Strides acquiring an additional 44 per cent of the expanded capital in Genepharm.

"We expect that Genepharm's sales and marketing expertise will help accelerate the growth of the Australian and Asian businesses," said Arun Kumar, vice chairman and managing director of Strides. "Combined with Strides' manufacturing strength and product offering, we are confident that this will prove to be a successful partnership that will create value for the shareholders in both companies."

Genepharm and Strides have also agreed to the payment of a A$500,000 break fee by the relevant party in the event that the Genepharm Transaction does not complete because of the occurrence of certain events, including the recommendation by either the Strides or the Genepharm board of a competing proposal.