Strides Pharma to acquire, in-license Sandoz generic brands in Africa for $12 million upfront

Strides Pharma Science Ltd on Tuesday (March 17) said it has entered into definitive agreements through its step-down subsidiary, Strides Pharma AG (SPIAG), to acquire and in-license multiple branded generic products from Sandoz AG across the Sub-Saharan Africa region.

The transaction involves Sandoz AG, Switzerland and its group entities, with Strides Pharma Global Pte Ltd, Singapore, acting as corporate guarantor on behalf of SPIAG.

The portfolio spans key markets, including Western Sahara, Ghana, Nigeria and Kenya, where Strides has an existing presence. The acquired and in-licensed portfolio comprises established brands in anti-infective, cardiovascular and dermatology segments, with several products recording annual sales exceeding $1 million.

Also Read: Strides Pharma shares rally 10% to hit all-time high; DAM Capital sees room for re-rating

The upfront consideration for the transaction is $12 million, payable at closing. In addition, Strides will make royalty payments to Sandoz based on a percentage of net sales of distribution products.

The agreement includes both outright acquisition of certain brands and in-licensing of others. The transaction is subject to customary closing conditions, including antitrust filings in relevant jurisdictions, and is expected to close by the end of Q2FY27 (quarter ending September 30, 2026).

Strides Pharma Global Pte Ltd, a step-down wholly-owned subsidiary and holding company of Strides Pharma AG, will provide guarantees to Sandoz to secure payment obligations. This includes a guarantee for the upfront $12-million payment, valid until completion, and a separate guarantee covering annual royalty payments linked to sales performance.

Also Read: Strides Pharma Q2 Results: Stock jumps 13% on strong margin expansion; US guidance maintained

The company said the transaction with Sandoz does not qualify as a related party transaction. Inter-company arrangements between SPIAG and SPG are treated as related party transactions and are at arm’s length. Promoter and promoter group entities do not have any interest in the transaction.

The corporate guarantee will be recorded as a contingent liability in Strides Pharma Global Pte Ltd's books, with no material financial impact on Strides Pharma Science Ltd.

Shares of Strides Pharma Science Ltd ended at ₹876.55, down by ₹14.40, or 1.62%, on the BSE today, March 17.