There was some regulatory overhangs post Strides-Mylan Agila transaction, says Arun Kumar, Executive VC & MD of Strides Shasun.
According to the brokerage, Strides Arcolab is an emerging leader that can potentially generate a 100 percent return over 3 years. US approval and merger synergies are key catalysts for the stock.
Strides Arcolab has a fairly strong organic growth strategy in place at the moment, says Group CEO & VC Arun Kumar.
According to information available in BSE, Strides Acrolab has 27,177 shareholders, including 24,320 retail investors. As of June 30, the promoters had a 27.39 percent stake in the company, while foreign institutional investors had 51.7 percent.
Strides is developing a portfolio of liquids and semi-solids products for the US and EU markets. Currently it has over 12 products at various stages of developments and approvals. The drug maker already sells semi-solids in the UK market.
Arun Kumar, of Strides Arcolab, has sold Agila, his cash machine. He is now turning to the bio-similars market.
Group CFO of Strides Arcolab TS Rangan tells CNBC-TV18 that the company is betting on Agila to drive growth in FY13.