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Aspen to sell two drugs groups for $301m

Johannesburg - Aspen Pharmacare [JSE:APN] , Africa’s largest generic-drug maker, agreed to sell two pharmaceutical portfolios to units of Strides Arcolab of India for a combined $301m. The shares gained.

The company will divest about 130 drugs to Strides’ Australian business for A$265m, Durban, South Africa-based Aspen said in a statement on Thursday. It will also sell a portfolio of six branded products to Strides Singapore for about $92m.

“These transactions form part of Aspen’s communicated strategic intent to focus attention in areas where most value can be added and to lessen complexity,” the company said.

Aspen, which supplies medicines in more than 150 countries, is seeking acquisition opportunities, particularly in Asia, and said May 14 it’s in talks to buy a baby-food business to add to the company’s nutrition unit. Earlier this month it agreed to sell a pharmaceutical business to Dublin-based Endo International for about $130m.

The shares rose as much as 2.3% and traded 1.6% higher at R381.90 as of 10:01 in Johannesburg, paring the decline this year to 6% and valuing the drugmaker at R174bn. Strides, based in Bangalore, traded 3.4% higher at a one-month high in Mumbai, valuing the company at $1.1bn.

“The Aspen Australian generic pharmaceutical assets are a valuable and unique platform for Strides to rebuild its business in Australia,” Strides chief executive officer Arun Kumar said in a separate statement. The acquisition will be “immediately” earnings accretive, the company said.

Strides sold its last Australian business to US drugmaker Actavis in 2012.

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