Strides Pharma Science Ltd, a major player in India’s pharmaceutical space, has once again taken a strategic leap in the global market. The company’s US-based subsidiary, Strides Pharma Inc., has acquired four approved Abbreviated New Drug Applications (ANDAs) from Nostrum Laboratories, Inc., USA, for a total consideration of USD 2.075 million (approximately ₹176 million).

This development is expected to significantly enhance Strides’ position in the US market, a region critical for growth among Indian pharmaceutical companies due to its size, regulatory standards, and high demand for generics.

Strategic Acquisition to Strengthen US Portfolio

The four ANDAs acquired by Strides include liquid and immediate release solid oral drugs, specifically in therapeutic segments that address:

• Urinary Tract Infections (UTIs)

• Pain Management

• Allergy Symptoms

• Attention Deficit Disorder (ADD/ADHD) and Narcolepsy

Among the four, two ANDAs are already commercial products, which are expected to be launched within the next 12 months, boosting revenue and operational synergy quickly.

Why the Deal Matters for Strides Pharma

This acquisition marks a significant portfolio expansion for Strides, especially in niche and difficult-to-manufacture product categories. These types of drugs often face less competition and command better margins, making them attractive for companies seeking profitability in the challenging US generics market.

Strides’ move shows an ongoing strategy to focus on high-value generics, which offer better returns than commoditised, crowded segments.

Share Price Performance and Market Impact

As the deal was announced, investors took note. Strides Pharma's share price was already under the spotlight due to its volatile movement in the past six months. Here’s a snapshot of its market activity:

• 52-week high: ₹1,675.25 on 17 October 2024

• 52-week low: ₹530.70 on 27 January 2025

• Current market capitalisation: ₹6,014.08 crore

• Trading status: 61.05% below its 52-week high and 22.96% above its 52-week low

• 6-month performance: Over 56% decline, indicating investor caution

This acquisition could restore investor confidence in the stock by demonstrating proactive international expansion and portfolio strengthening.

What are ANDAs and Why They Matter

Abbreviated New Drug Applications (ANDAs) are regulatory filings submitted to the USFDA for the approval of generic drugs. Once approved, they allow companies to produce and market drugs that are bioequivalent to branded versions without undergoing extensive clinical trials.

By purchasing approved ANDAs, companies like Strides skip long development and approval timelines, bringing products to market faster and more cost-effectively.

Therapeutic Segments Targeted

Let’s look deeper into the therapeutic areas the new ANDAs target:

1. UTIs: With high recurrence and growing antimicrobial resistance, the market for UTI treatments remains strong.

2. Pain Management: A segment that always maintains demand, especially in the US where chronic pain cases are common.

3. Allergy Medications: Seasonal and environmental allergies are a persistent problem in North America, ensuring continued market need.

4. ADD/ADHD and Narcolepsy: This segment offers complex and high-value treatment opportunities that require precision manufacturing and regulatory compliance, aligning with Strides’ strategic focus on niche categories.

Nostrum Laboratories – Who Are They?

Nostrum Laboratories, based in the US, is known for developing and manufacturing generic pharmaceuticals. The sale of these ANDAs to Strides likely indicates a strategic exit or focus shift for Nostrum, while providing an opportunity for Strides to scale up with minimal friction.

This acquisition suggests a win-win transaction, with both parties aligning their strategic goals.

Looking Ahead: What This Means for Strides Pharma

With the inclusion of these ANDAs:

• Strides will accelerate its product launches in the US.

• The company’s revenue visibility improves, particularly in FY2026.

• A stronger US presence allows better competitive positioning against peers.

• Enhances investor sentiment in an otherwise volatile market phase.

This move also signals Strides' continued commitment to inorganic growth strategies, supplementing its organic pipeline and global partnerships.

Conclusion

The acquisition of four approved ANDAs from Nostrum Laboratories by Strides Pharma’s US arm is a well-calculated step towards reinforcing its footprint in the US market, diversifying its product basket, and improving short-to-medium-term revenue outlook.

Amid a challenging stock market phase for the company, this bold acquisition could serve as a turnaround catalyst, especially as two of the acquired ANDAs are ready for commercial rollout within a year.

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