Strides Pharma Science on Friday said it will acquire Endo International plc's manufacturing facility at Chestnut Ridge, New York along with a basket of abbreviated new drug application (ANDAs) for USD 24 million. The wholly-owned subsidiaries of Strides Pharma Science have entered into definitive agreements with the subsidiaries of Endo International plc to this effect.

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Under the terms of the agreement, Strides will pay USD 24 million for the acquisition, the company said in a regulatory filing. "The acquisition we have announced today is a very good strategic fit for the business and will help further accelerate our growth momentum for the US market. With this acquisition, we have doubled our US portfolio with a potential to launch 5-6 new products each quarter going forward," R Ananthanarayanan, Managing Director and CEO Strides Pharma Science said.

Elaborating on the strategic rationale for the deal, the company said over the last few years, Strides US business has seen a significant ramp-up driven by portfolio expansion and strengthening of front-end presence. The cumulative addressable market for the acquired portfolio is USD 4.7 billion (IQVIA MAT May 2021), the company said.

Strides said the facility at Chestnut Ridge, New York has an annual capacity of 2 billion units across semi-solids, liquids, nasal sprays along with oral solids. The transaction will be financed by a combination of internal accruals and debt financing. The transaction is expected to close in the calendar year 2021, subject to customary closing conditions.

"The US is now the largest market for Strides contributing 48 percent of FY21 consolidated revenue. The proposed acquisition will further bolster Stride's US presence through the acquisition of a multi-dosage facility in the US and a basket of ANDAs cutting across multiple therapeutic segments," the company added.