Global pharmaceutical company, Strides Shasun is set to become one of the largest generic drug makers in Australia. Merging with the local operations at Apotex, the company will expand its footprint in the country and drive further revenue.
With seven manufacturing facilities across three continents, the company presently functions under the Arrow brand within Australia and will have a controlling interest in the merged Australian businesses once complete.
The Australian pharmaceutical market has witnessed exponential growth over the last decade, where the country has contributed significant growth for companies such as Strides and Apotex. However, the merger will not include the hospital arm of Apotex.
“The proposed merger will take the best of both companies, optimise our shared cost base, and maintain the viability of our operations through the more effective delivery of medicines and services to consumers and patients,” said Roger Millichamp, Chief Executive Officer at Apotex Australia.
“Both companies are currently in a strong commercial position but will be better positioned to meet the future challenges of the Australian pharmaceutical industry following the merger,” he added.
Upon completion, the combined unit will amass a market share of over 50%, with 3,200 first-line pharmacy accounts, the largest by volume and value, Bloomberg has reported.
With increased market share, the unit will therefore gain increased negotiating power within the generic pharmaceutical industry in Australia and the US, delivering significant cost efficiencies across the chain.
Dennis Bastas, Arrow’s executive chairman will manage the merged business and Millichamp will become its CEO.
“The proposed merger will provide our joint Australian customers with unparalleled service and support from the businesses with which they have chosen to partner for over 15 years," noted Bastas.
“Once complete, our merged operation will continue to provide all of the Arrow and Apotex brands that our customers have come to know and trust, and further enhance our customer service and continuity of supply, to better help pharmacists grow their businesses.”