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<keyword id="92696" type="COMPANY" weightage="100" keywordseo="Strides-Arcolab">Strides Arcolab</keyword> Ltd and <keyword id="1493170" type="UNKNOWN" weightage="100" keywordseo="Shasun">Shasun</keyword> Pharmaceuticals have announced their merger. As per the merger deal, Shasun “will be amalgamated with and into Strides. Shasun shareholders will receive five (equity) shares of Strides for every 16 shares held by them in Shasun.” 
 Shasun shareholders will own 26% of the combined entity, and will set up a vertically integrated <keyword id="6363818" type="PERSON" weightage="60" keywordseo="Pharma">pharma</keyword> company with multiple revenue streams. 
 
Strides Arcolab, which also made a filing to the Bombay Stock Exchange, said a scheme of amalgamation between the two companies has got the nod of the board of directors of both companies. 
 
“The combination creates a vertically-integrated pharma company of scale with strong presence in front-ended regulated markets finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients and contract research and manufacturing services,” the press release of Strides said. The merger is likely to materialise by June next year.

Shasun Pharma And Strides Arcolab To Merge
Next Year

<ul><li>The company which is known for its oral diabetics reported a 10% growth in August sales.</li><li>The management said that its sales performance will be ahead of the market in FY24.</li><li>Analysts say that it has multiple growth levers with new launches, better capacity utilization and more. </li></ul>Indian pharma sales have been tepid this monsoon due to delayed seasonal effects. One of the better performers in August has been Ahmedabad based <keyword id="3157738" type="General" weightage="20" keywordseo="eris-lifesciences" source="Orion">Eris Lifesciences</keyword> which clocked 10% monthly sales growth. The company, which is known for its oral diabetics, was able to report a stellar growth in the sector. Says a recent report by J M Financial: “Apart from ophthalmology, oncology, urology and cardiac and anti-diabetic, all top therapies reported negative volume growth this month.” Its monthly growth, however, is not the only factor driving the stock which has gone up by 26% in the last month, giving 16% returns over a one year period. The company hopes to achieve market beating growth in the current financial year. “We have to see how the market behaves. But this year we should be at least 400 basis points ahead of the market. The market in our view would end up at around 8% at least, 8% to 9%,” said Amit Bakshi in the earnings conference call. The inorganic growth story The company has a charted a long winding inorganic growth strategy by acquiring the domestic formulations portfolio of Strides Shasun in 2017; Zomelis (Vildagliptin) brand from Novartis in 2019; and forged an equity alliance with MJ Biopharm in 2021. Each of these acquisitions has given it entry into new therapeutic segments like the central nervous system, and strengthened its presence in the diabetics segments. Its latest acquisition of Mumbai-based formulations company Oaknet in 2022, has added to its women’s health segment while helping it enter the dermatology sector. The results of the consolidation of business was evident in the latest quarter where its revenues went up by 17% YoY, which was above market expectations, driven by growth in branded formulations and Oaknet consolidation. “Eris Lifesciences recorded robust annual revenue growth in Q1FY24 led by the smooth integration of Oaknet operations and the gradual ramp-up in capacity utilization levels that aided growth during the quarter,” said a research report by B P Equities. Even as its adjusted net profit remained flat, its operating profit margin during the quarter expanded by 396 basis points to 36.4% in Q1FY24. Some of its acquisitions are operating at sub-optimal profitability and a revenue scale up from the same is expected soon. New launches ahead It has also planned new launches in dermatology and aims to expand product ranges in women’s health therapies. We have had a couple of very good launches. We just launched something for the first time in India – Minoxidil Booster. It has a very large market for alopecia. We are quite excited, and hitting the market with a very good moisturizer by the month end again. So, our plate is quite full,” said Bakshi. Going ahead, the company remains on track to improve the profitability of acquired businesses and build its product pipeline with new launches, the research firm said. BP Equities says that the company has multiple growth levers ahead such as healthy product launches in the cardio, diabetes and derma segment, reducing losses in the insulin business and better capacity utilization. The pharma company is also expanding its coverage of specialists and consulting physicians and is expected to add more medical representatives in FY24. It’s also planning to repay debt, with aims to bring it down to ₹400 crore net debt by the end of the current fiscal year. “Going ahead, we expect the company to outperform within the cardio-metabolic and derma market and expect robust growth over the next 2-3 years with wide patent expiration opportunities,” said BP Equities.

This midcap pharma stock eyes multiple growth levers with its acquisition strategy

The <keyword id="6354813" type="COMPANY" weightage="100" keywordseo="nifty">Nifty</keyword> is likely to open flat-to-weak on Monday as overseas cues paint a dismal picture for <keyword id="45369" type="CITY" weightage="100" keywordseo="equities">equities</keyword> ahead of the <keyword id="117388" type="ORGANIZATION" weightage="100" keywordseo="US-Fed">US Fed</keyword>’s meeting later this week. 

	Traders are unlikely to push the Buy button as they await the judgement of the US Fed’s rates setting panel meeting on Tuesday and Wednesday to discuss the health of the US economy. The SGX Nifty futures point to a 30-point drop in the Nifty in early deals. 
 

	The Nifty Index closed at 8,521 points, down 68 points on Friday. Weekly losses totalled to about 1 percent. The Nifty faces resistance in the 8,600-8,637-points band, while support is seen at 8,500-8,400 levels. This is the expiry week as well, hence trading on the Index will be limited to a narrow band.
 

	Markets are also keenly watching steps the government may take to control equity investments via the P-Note route after a report from the SIT directed SEBI to track down the ultimate beneficiaries of such instruments and urged for curbing its misuse.
 

	Meanwhile, global cues continued to be weak. Major Indices in the US closed with weekly losses of 2.5 percent to 2.8 percent. The mood was even more bearish in EU markets, where weekly drops totalled between 1.7 percent and 3.8 percent.
 

	Markets in Asia are trading with caution on Monday, posting minor losses in Japanese, Korean and Chinese equities ahead of the US Fed’s meet. Cues from the commodity space are tepid.
 

	Foreign Institutional Investors raked in measly 7 crore worth of purchases in the cash market on Friday compared with net buys of 196 crore rupees by domestic investors. The derivatives space saw sales worth 36 crore rupees for Index Futures; Sales of 782 crore rupees for Stock Futures; Sales of 322 crore rupees for Index options and sales of 154 crore rupees for Stock Options.
 

	STOCKS TO WATCH:
 

	POWER FINANCE CORPORATION: Government to sell 5% equity via Offer for Sale route.
 

	RELIANCE INDUSTRIES: Reported its best quarterly earnings after 6 years as refining margins soared. First quarter Consolidated Profit after Tax grew 4.4 percent to 6,220 crore rupees. Sales during April-June fell 26 percent to `77,100 crore rupees as global crude oil prices dipped.
 

	BHARTI AIRTEL: Will launch its much awaited 4G-data services in 44 cities ahead of Reliance JIO.
 

	NIIT Technologies: Targets revenue of $1 billion over the medium term.
 

	SUN PHARMA: To raise between $500- $1 billion via offshore bonds bearing maturity of 5-10 years.
 

	TELECOM STOCKS: The government plans to hold another round of spectrum auctions in early 2016.
 

	MEDIA STOCKS: Round 3 of auction for radio waves begins today
 

	SEQUENT, SHASUN, LYKA LABS: Lyka Labs is all set to sell its animal medicines units to a joint venture controlled by Sequent and Shasun.

	 
	 
	(Image credits: financialexpress)

Top things to look out for in the market today

The government has approved FDI worth around Rs. 4,000 Crores for four pharma and medical devices firms. 
 
The accepted list includes Torrent Pharmaceuticals and Biocon's Syngene. However, Strides Arcolab was not allowed to issue shares to non-resident and resident equity shareholders of Shasun Pharmaceuticals. Three other drug companies’ applications have been delayed. 
 
The government’s decision to allow Torrent Pharmaceuticals' Rs. 3,000 Crores proposal for increasing FII limit to 35% from 13.09% was the biggest today. Syngene's proposal to raise FDI of about Rs. 930 Crores by raising the foreign investment to 44% from the current 10% was the second biggest in the pharmacy sector today. 
 
Others given approval are Stericat Gut Strings Pvt Ltd for FDI of Rs 43.52 Crores as it wants to sell 77.5% of its shares to Groupe Peters Surgical LLC 
 
Ordain Health Care Global Pvt Ltd was also allowed FDI of Rs. 23.34 Crore to buy assets from Alkems Fertica. 
 
The list whose proposals were delayed includes Celon Laboratories, Shantha Biotechnics and Sparsha Pharma International. 
 
(Image credit: Indiatimes)

You Searched For "Shasun" and got 4 results

Shasun Pharma And Strides Arcolab To Merge Next Year

BI India Bureau

This midcap pharma stock eyes multiple growth levers with its acquisition strategy

Katya Naidu

Top things to look out for in the market today

Shailendra Bhatnagar

Whopping Rs. 4,000 Crores FDI boost for Indian Pharma

BI India Bureau

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