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An Indian biopharmaceutical company has seen its activities in the United States increase accordingly as it expands its portfolio, and the company acquires a manufacturing site on the New York / New Jersey border to increase its annual capacity and avoid problems of the supply chain.
Strides Pharma will acquire Endo’s facilities in Chestnut Ridge, New York, along with a “basket of new abridged drug applications,” the company said. The acquisition will cost Strides approximately $ 24 million and will be funded by a combination of internal accrued liabilities and debt financing. The deal is expected to be finalized in 2021.
In a statement, CEO R Ananthanarayanan said:
We believe that with the combined product portfolio, experienced management team, established frontend and a diverse manufacturing footprint, we have created a solid foundation to achieve our previously stated growth ambition for the market. Upon completion of the transaction, we will immediately focus on seamless integration of the people and assets acquired on the Strides platform.
The move comes as the United States has become the largest market for Strides, accounting for 48% of 2021 revenue. The multi-dosing facility will help the company increase its annual capacity, as it has the potential to produce 2 billion units per year in semi-solid, liquid, nasal spray and oral solid dosage form. Strides is the world’s largest manufacturer of soft capsules.
Strides says the site reflects the capabilities of its flagship location in Bangalore, India, but being in the United States, it will be able to meet contracts with U.S. government procurement programs, such as the Department of Veterans. The company will support 20 commercial products. The ANDAs it has put in place will launch its new US strategy, which provides for five to six new products per quarter.
Strides established his biotech company under Stelis in February, with the board forming a committee to explore various “value discovery†options.
With the buyout, Strides will retain 215 of the employees previously employed by Endo, create 40 more jobs and invest an additional $ 42 million over the next few years to manufacture both brand name and generic drugs. It will also operate as a subcontractor.
New York will provide the company with up to $ 10 million in tax credits to retain current employees and create those 40 jobs.
“The Covid-19 pandemic has made it clear that having domestically produced medical supplies, especially in times of crisis, is essential for a secure supply chain and a more secure New York,†Governor Kathy said Hochul in a press release. “I am delighted that Strides Pharma, Inc. is expanding in the Mid-Hudson area, creating well-paying jobs and investing in the state’s economy.
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