Drug firm Strides Arcolab today said it has sold its entire stake in its

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Australian subsidiary Ascent Pharmahealth to Watson Pharmaceuticals for AUD 375 million (over Rs 1,970 crore).

"As part of the transaction, Watson also acquired the remaining 6 per cent shareholding associated with Dennis Bastas, CEO of Ascent," Strides said in a statement.

Shares of Strides Arcolab jumped by 16.02 per cent to Rs 472.60 on the BSE in afternoon trade.

Ascent is a leading generic pharmaceutical company in Australia and is present across several countries in Southeast Asia, including Singapore, it added.

Commenting on the transaction, Strides Arcolab Executive Vice Chairman and Group CEO Arun Kumar said: "The sale of Ascent is a value enhancing and forward-looking initiative for Strides. We have been clear about our intention to focus on our highly attractive steriles segment, which we expect to be our growth engine going forward."

The transaction further facilitates the execution of this strategy and unlocks significant value for the Group. Furthermore, the proceeds from the transaction considerably strengthens the company's balance sheet, he added.

Watson President and CEO Paul Bisaro said: "The acquisition of Ascent provides Watson with a successful commercial structure in both Australia and Southeast Asia and a broader pipeline of products to support continued growth".

The transaction is in line with the firm's strategy to focus on core high-growth Agila Specialties business unit while capitalising on significant value creation to date representing a highly attractive return on investment for its shareholders, Strides Arcolab said.

The company has 13 manufacturing facilities across 5 countries with presence in more than 75 countries in developed and emerging markets, it added