Strides Arco plans to sell its Australian unit; stk up/news09012012

According to reports, Drugmaker Strides Arcolab is planning to sell its Australian branded-generics unit.

Reacting to this shares of Strides Arcolab gained over 3%, touching the day's high of Rs407.80. Till now, over 4,508 shares have traded on the BSE as against the two-week average volume of 9,966 shares.

The company is considering the sale of its Australian branded-generics unit, Ascent Pharmahealth, as per the reports.

US investment bank Jefferies and Co is advising Strides Arcolab on a divestment plan that may also include other businesses such as softgel and anti-retro viral drug manufacturing, as the drugmaker wants to focus on specialty injectables, the report said.

However, Strides Arcolab declined to comment on the development.

Ascent Pharmahealth is one of the largest branded generic drugmakers in Australia, with 13% market share. It also has a significant presence in Singapore, Thailand and Vietnam.

The Australian branded-generics unit had sales of $140 million in 2010, the report said.

At 10.52 am, Strides Arcolab was trading at Rs401.10, up by 1.69%, with a volume of 4,518 shares on the BSE.
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