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April 05, 2013

Profle of Strides Arcolab Founder Arun Kumar

In February 2013, the publicly listed Strides sold its injectable medicine business, Agila Specialties, to US drug giant Mylan Inc. From the Business Today profile:
Son of a government official, Kumar hails from Kerala and grew up in Ooty. He was just 21 years old when he set out for Mumbai in 1982 to seek his destiny. In his initial days, he worked with the Bombay Drug House and British Pharmaceutical Laboratories. He set up Strides at Vashi, Navi Mumbai, in 1990. ...the sale, at more than $1.6 billion (about Rs 9,000 crore), is one of the biggest deals in the Indian pharmaceutical sector in recent times. Strides will get an additional $250 million if it meets certain undisclosed conditions. ...Analysts say injectables, the business Strides is selling, is an interesting segment, partly because making injections is more difficult than making tablets. Plus, this is a product more targeted at hospitals than individuals. This means that there are fewer players in the market. The upside is that when innovator products go off patent, prices of generic versions do not fall drastically. The size of the injectables market is much smaller than that for oral drugs. In the global pharmaceuticals market of around $800 billion, the size of generic injectables would be one per cent, says Kumar. But, as Mylan said, the segment is growing at a much faster pace.
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