Strides Arco shows momentum

Strides Arcolab is in the limelight today morning. From a closing of Rs,1145.85, the stock opened at Rs.1161 and went on to the day’s high point at Rs.1191.50. It currently remains over 3% higher.

The stock is showing good momentum on news that it has signed an agreement with Sun Pharma to acquire the Central Nervous System (CNS) business of erstwhile Ranbaxy Labs. The agreement involves transfer of these two market ing divisions, along with employees to Strides for a consideration of Rs.165 crore. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs.92 crore in sales. During the divestment process, Sun Pharma was cognizant that the interests of its employees working in Solus and Solus Care divisions were not compromised.

Subroto Banerjee, President – Brands, India of Strides said,“The acquisition of Solus and Solus Care divisions is of strategic significance to the growth of our branded business in India. The rich product portfolio and capable teams of these two divisions will help us establish a strong footing in the fast growing CNS market of India. The product portfolio of Strides and these divisions will strategically complement each other very well. The specialty nature of CNS products makes brand equity and customer relationships, key determinants of success. The Solus and Solus Care divisions readily qualify for both these parameters. We look forward to welcoming the employees of these divisions to the Strides family and working together with the team members in future growth path of Strides.”