Strides Shasun on a good run

Strides Shasun rose 4.5% to an intra day high at Rs.1095 and continues to remain firmly in the green.

The company announced today morning that it had settled all regulatory claims pertaining to Agila with Mylan.  With this full and final settlement, Mylan's regulatory concerns claims will be satisfied from the Regulatory Escrow, and Strides will receive approximately US$ 30 million. Both companies have also agreed on a full and final settlement of the warranty and indemnity claims.

The company said general claims escrow continued to be valid till December 2017.

In December 2013, US pharma major, Mylan bought Agila Specialities, a company of Strides, for $1.75 billion. Soon Myaln raised a red flag over regulatory concerns at its factories and the deal agreement. Following this, Strides, earlier known as Strides Arcolab, had initially deposited $100 million for potential damages in an escrow account, which it had increased to $200 million.

Traders and shareholders are relieved that this sword of dispute and claims by Mylan is finally settled and Strides can move ahead, concentrate on its performance, which was good for Q2FY17. The company almost doubled its consolidated net profit at Rs.74 crore, up from Rs. 36 crore in previous Q2. This was on the back of a robust revenue - total income from operations went up by 33% to Rs.93 crore.