Strides Pharma Science Ltd shares surged nearly 10% in early trade on Tuesday, i.e. 30 July, after the company announced its entry into the Chinese market through a joint venture between its Singapore-based step down subsidiary Strides Pharma Global Pte (SPG) and Sun Moral International (HK) Ltd, a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd (Sihuan), one of China’s leading pharmaceutical companies.
At 9:33 am, shares of Strides Pharma Science were trading at Rs 382.55, up 8.4%, on BSE after hitting an intra-day high of Rs 387.80. The stock has fallen 10% in the last one year.
Both the companies will set up a JV company based in Hong Kong to be called Sihuan Strides HK, where SPG will own 49% stake, Strides Pharma said in a statement.
Strides will license four products immediately to this JV with an option to expand the portfolio subsequently and will receive a licensing fee for each product in-licensed to the venture. It will supply these products from its manufacturing facilities at India and Singapore.
“We are delighted to partner with Sihuan Pharmaceutical with the initial set of products having a significant market opportunity in China. We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China,” Strides Group CEO and Managing Director Arun Kumar said.
Meanwhile, Sihuan will leverage its strong sales force of over 4,000 people and over 3000 distributors across Mainland China to market these products. “Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels,” Sihuan chairman and executive director Che Fengsheng said.
The JV will also explore setting up local manufacturing in China in due course, the statement added.
China is the second-largest pharmaceutical market with a $137 billion market opportunity. Sihuan has a market share of 8.3% in the cardio-cerebral vascular market and presence in other therapeutic areas.
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