5 November 2018 - Deborah Wilkes
Strides Pharma Science is set to receive private-equity funding worth USD20 million to grow its Consumer Healthcare business.
The Indian pharmaceutical company said its Board of Directors had approved definitive agreements with funds advised by ICP-III Investment Advisors to provide "growth capital and focused attention to its Consumer Healthcare business".
The Consumer Healthcare business reported sales of USD6.4 million in the year ended 31 March 2018. Strides Pharma Science said the "nascent" business accounted for just 1.5% of its sales in the period.
The business markets a portfolio of brands – including JointFlex, NiteThru, Nixit and Pediacare – in the US, India and several other countries. It has a presence in a number of product categories including analgesics, smoking-cessation, pediatric care and sleep aids.
Strides Pharma Science has boosted its Consumer Healthcare business with a series of acquisitions in recent years including the purchases of JointFlex and Pediacare from Sweden's Moberg Pharma.
About the deal
Under the terms of the agreement, the funds will subscribe to the equity capital of two of Strides Pharma Science's wholly-owned subsidiaries: Strides Consumer Pvt Ltd, India, and Strides Global Consumer Healthcare Ltd, UK.
At a later date, Strides Consumer Pvt Ltd will become a fully-owned subsidiary of Strides Global Consumer Healthcare Ltd, subject to approval by the Reserve Bank of India.
Strides Pharma Science said the transaction, which was subject to customary closing conditions, involved raising funds at the subsidiary level and did not involve disposal of the subsidiaries.