Strides Arcolab to acquire drug unit in Singapore

01 September 2006

Mumbai: Strides Arcolab subsidiary Strides Singapore is acquiring Singapore's leading generics pharmaceutical manufacturer, Drug Houses of Australia (Asia) Pvt Ltd (DHA), for around Rs 58 crore (S$19.7 million). DHA is a subsidiary of Haw Par Healthcare.

Strides Arcolab has signed a share purchase agreement with Haw Par Healthcare, as per which Strides' indirect subsidiary, Strides Singapore Pte Ltd, would buy out DHA, the company said in a filing with the Bombay Stock Exchange (BSE).

"The signing of the share purchase agreement with Haw Par Healthcare is the key strategic initiative for Strides to continue to grow through regional strategies alongside global partnerships," the company's vice chairman and managing director Arun Kumar said.

The acquisition of DHA will support the company's plans to penetrate the Asia Pacific and Chinese markets and offer an opportunity to create a regional brand in these markets in the long term.

The deal is subject to regulatory clearances and is expect to be completed over the next month.

Established in 1969, DNA is one of the largest generic pharmaceutical manufacturers in Singapore. It is also an important pharma player in Malaysia and Hong Kong amongst others. DHA has a GMP certified manufacturing facility in Jurong, the industrial heartland of Singapore, which manufactures a range of pharmaceutical products.