SpicyIP Press Release: Strides makes a huge Stride!

Just when the pundits of doom had almost concluded (prematurely???), thanks to the Ranbaxy-Daiichi deal, that the Indian generics industry was going down to Davy Jones’ locker with more voices joining the chorus each day, Strides Arcolabs shows a thumbs up for the Indian generics industry with its acquisition of a controlling interest in Ascent Pharmahealth Limited (formerly Genepharm Australasia Limited). With this, Strides becomes the 4th largest generic company in Australia.

Come September, from the current holding of 50.1% stake in Ascent Pharmahealth, Strides is expected to increase its stake to 55%. This information comes straight from the horse’s mouth for SpicyIP has received a copy of the press release from the company. Commenting on the future of Ascent Pharmahealth, Arun Kumar, Vice Chairman and Group CEO of Strides said:

“Australia and the emerging markets of Asia are strategic and important markets for Strides. With Asia growing 3 times in comparison with Western markets, we strongly believe that Ascent Pharmahealth is positioned to take leadership in these markets.”

The Press Release further states that the senior management of Ascent Pharmahealth led by Mr. Dennis Bastas will lead the Company as CEO, while Mr. Mark Bisset, Regional Director for Strides Australasian Operations will form part of the senior management team at Ascent Pharmahealth. Arun Kumar, Vice Chairman & Group CEO and Ravi Seth, CEO – International Operations, will join the Board of Ascent Pharmahealth.

Here’s an article in newswire today that charts the steady growth of Strides Arcolabs in glowing terms:

“Established in 1990, Strides Arcolab is one of India’s leading integrated manufacturer and exporter of finished pharmaceutical dosage forms – both branded and generic as well as a significant global player in soft gelatin capsules and sterile parenterals with quality standards that meet the most stringent regulated market standards.

With a firm belief in Leadership through Partnering, Strides has a tie-up with top Pharma majors across the world who are truly global in skills sets, R & D, Manufacturing practices as well as attitude and vision. For the Human Resource Development needs, Strides chose BITS Pilani and signed a MoU in March 2004 for offering a 2 year MS in Pharmaceutical Operations & Management as a work integrated learning program for the employees at Bangalore.”

This heartening development may have a few lessons in it for those who wish to see the Indian consumer getting the best deal, preferably from home grown entities like Strides that have come of age. Aggressive patent invalidation tactics may seem like a short-cut for an easy buck, but the stakes involved are pretty high and some may end up burning their fingers in addition to being branded as copycats.

It is not my stand that merely because one particular entity hasn’t had much luck with invalidation bids, the option is not worth trying. But given the obvious advantages (or atleast absence of grave disadvantages) associated with conventional routes which are less litigious, they must be explored first before companies go to Court. Acquisitions, joint product developments, industry-academia partnerships, public-private ventures combined with informed marketing strategies may ultimately help the Indian generics though this path sounds like it needs a bit more of elbow grease.

Of course, if one has a decent patent invalidation strategy and the confidence that the company can even survive a defeat, patent invalidation may present a better cost-to-benefit ratio.

For now, lets hope that this achievement of Strides Arcolabs receives atleast as much newspace as the Ranbaxy-Daiichi deal, if not more.